The employment cycles of neighboring cities

This paper examines the spatial interaction of neighboring cities over their employment cycles. Neighboring cities, which are large and closely integrated cities within the same metro area, tend to have relatively similar employment cycles. However, this is largely because they tend to be in the same state, not because they are neighbors. Depending on differences in size, density, and human capital, neighborness usually means that cities have relatively dissimilar employment cycles. I attribute this result to the tendency for cities within the same metro area to specialize according to function and human capital.

► The employment cycles of neighboring cities are relatively similar to one another.
► This similarity is largely because neighbors tend to be in the same state.
► Agglomeration and human capital interact with neighborness to reduce similarity.
► These interactions mean that neighborness tends to reduce cyclical similarity.