SERVICE EMPLOYMENT IN LARGE, MEDIUM, AND SMALL METROPOLITAN-AREAS IN THE UNITED-STATES

The role of services in regional development has been one of the core topics of research in industrial geography. The purpose of this paper is to examine the association between service employment and labor-mar ket characteristics. The effect of localization economies on the distr ibution of service employment also is examined. The results show that the response of services to labor-market characteristics is relatively similar between large- and medium-sized metropolitan areas compared t o large-and small-sized metropolitan areas. The significance of low-or der white-collar and pink-collar work forces in attracting service emp loyment at all levels of the metropolitan hierarchy implies that the i mpact on skills and earnings would be moderate. Manufacturing concentr ation, low labor quality, and a perception of higher wages are deterre nts to growth in services, whereas localization economies and high-ord er labor are significant in determining certain types of service emplo yment in metropolitan areas.