Labor needs, crime, and the business location decision: a qualitative account

Abstract

The reliance on econometric models in site-selection research limits what we can conclude about how decision-makers evaluate some common location factors. In an effort to open the “black box” of location decisions, this article makes use of in-depth interviews with corporate real estate managers and external service providers to illustrate how such actors serve as intermediaries in the site-selection process. The findings reveal that distinct ways of operationalizing one factor – in this case, labor needs – can influence how decision-makers think about not only the labor market characteristics of a potential location, but also other important factors, such as crime. The data furthermore demonstrate the degree to which real estate professionals rely on anecdotal evidence and subjective perceptions when assessing various location factors. This has important implications for the types of strategies that community development officials might deploy in an effort to attract private investment.

Keywords:

• economic development/assessment economics
• human capital
• urban development
• crime
• qualitative research methodology

Acknowledgments

I would like to thank the editor of Community Development and the anonymous reviewers for their insightful and constructive comments on an earlier draft of this manuscript. I am also grateful to the interview respondents who generously gave their time for this study.