PDFDownload paper, RWP 17-16, November 2017

Centralized employment remains a benchmark stylization of metropolitan land use. To address its empirical relevance, we delineate “central employment zones” (CEZs)—central business districts together with nearby concentrated employment—for 183 metropolitan areas in 2000. To do so, we first subjectively classify which census tracts in a training sample of metros belong to their metro’s CEZ and then use a learning algorithm to construct a function that predicts our judgment. Applying this prediction function to the full cross section of metros estimates the probability we would judge each census tract as belonging to its metro’s CEZ. Using a high probability thresh-old for tract inclusion conservatively delineates a predicted CEZ for each metro. On average, the conservatively predicted CEZs account for only 12 percent of metropolitan employment in 2000. But the distribution of shares is positively skewed, with the conservatively predicted CEZs accounting for at least 20 percent of employment in 29 metros. Employment centralization is considerably higher for agglomerative occupations—those that arguably benefit most from face-to-face contact. The conservatively predicted CEZs account for at least 33 percent of agglomerative employment in 24 metros and at least 50 percent of legal employment in 79 metros.

JEL Classification: C45, R12, R32

Article Citation

  • Brown, Jason P., Maeve Maloney, Jordan Rappaport, and Aaron Smalter Hall. 2017. “How Centralized Is U.S. Metropolitan Employment?” Federal Reserve Bank of Kansas City, Research Working Paper No. 17-16, November. Available at External Linkhttps://doi.org/10.18651/RWP2017-16

Related Research

  • Rappaport, Jordan. 2014. “Monocentric City Redux.” Federal Reserve Bank of Kansas City, Working Paper 14-09.
  • Rappaport, Jordan. 2017. “Crowdedness, Centralized Employment, and Multifamily Home Construction.” Federal Reserve Bank of Kansas City Economic Review, 102(1) 41-83.

Authors

Jason P. Brown

Research and Policy Officer

Jason Brown is a Research and Policy Officer in the Economic Research Department of the Federal Reserve Bank of Kansas City. In this role, he coordinates the regional and commodi…

Jordan Rappaport

Senior Economist

Jordan Rappaport is a senior economist at the Federal Reserve Bank of Kansas City. He joined the Bank in 1999 following completing his Ph.D. in economics at Harvard University. J…