Diversity and employment growth in sub-regions of Great Britain

Abstract

This article presents evidence from an empirical study of employment growth across 203 sub-regions of Great Britain using OLS and maximum likelihood spatial econometric techniques. The results suggest a positive relationship between diversity and local employment growth implying that cross-sector externalities may be of considerable importance to the local growth process. The presence of spatial autocorrelation in the data suggests the existence of substantive interactions across contiguous sub-regions.