Topics: Airline hub, Metropolitan area, Airport / Pages: 24 (5956 words) / Published: Dec 16th, 2012
Airports and Urban Employment Scott Istvan (630) 433-6620 12/23/2011 Abstract: Airports are undeniably a cornerstone of our modern society. They allow inter-city economies of agglomeration to occur and are key to facilitating face-to-face contact. The question arises, however, of what exactly the effect of airport traffic is on a city. This article discusses studies by Brueckner and Percoco, which look at the impact of airports on service sector employment; a study by Green which attempts to show that airports cause population growth is also discussed. This article builds off the works of the other authors by examining the effect of passenger throughput at airports on more specific types of employment, and finds that airports have a significant impact on the service, finance, and tourism jobs. The article then discusses two case studies where new airports were built in an attempt to demonstrate the direction of causality, but the results are inconclusive due to the limited scope of the study.


Table of Contents Introduction - 2 Literature Review - 5 Research Design - 11 Findings - 13 Cases - 18 Conclusion - 21 Appendices Appendix A: MSAs in sample - 22 Appendix B: Summary of Data - 25 Appendix C: Scatterplots of Employment on Passengers per Capita - 26 Works Cited - 28


I. Introduction

Cities are still relevant even in this digital age because of the importance of face-to-face contact. Airports further facilitate face-to-face contact between cities and across countries. Glaeser (1992) mentions the importance of first nature advantages like ports in determining city growth. Building off of this, Freestone and Baker (2011) claim “airports are shaping urban space in the twenty-first century much as highways did in the twentieth century, railroads did in the nineteenth century, and seaports did in the eighteenth century” (Freestone and Baker 2011). Airports are not only important for the transportation of goods, but also for

Cited: Literature: Button, Kenneth, and Samantha Taylor. 2002. High-technology employment and hub airports: Infrastructure 's contribution to regional development Aldershot, U.K. and Burlington, Vt.: Ashgate. Brueckner, Jan K. 1985. A note on the determinants of metropolitan airline traffic. International Journal of Transport Economics 12, (2): 175-175-184. Brueckner, Jan K. 2003. Airline Traffic and Urban Development. Urban Studies. Forister, Eric Franklin. 2009. Measuring the Benefits of Transportation Infrastructure Investment: Airline Scheduling, Airport Capacity Expansion, and Consumer Welfare. Stanford University, 2009. United States -- California: ProQuest Dissertations & Theses (PQDT). Freeston, Robert and Douglas Baker. 2011. Spatial Planning Models of Airport-Driven Urban Development. Urban Studies. Green, Richard K. 2007. Airports and economic development. Real Estate Economics 35, (1): 91-91-112, McCarthy, Michael Brian. 2010. Air Transportation by Metropolitan Area: Different Measures of Airport Activity Yields. College of Arts & Sciences: Geography, 2010. United States -- North Carolina: ProQuest Dissertations & Theses (PQDT). Rappaport, Jordan. 2003. US Urban Decline and Growth, 1950 to 2000. Economic Review - Federal Reserve Bank of Kansas City. Data: U.S. Census Bureau. 2009 American Community Survey 1-Year Estimates. Tables DP2, DP3, and DP4. Used for employment data, housing age data, college graduate data, and commute data. U.S. Census Bureau. 2010 Decennial Census, Summary File 1. Table GCTP2. Used for population totals. Federal Aviation Administration. 2010. Enplanements at Primary Airports. Used for passenger data and hub status. 28

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