THE LOCATION OF SERVICES IN THE URBAN HIERARCHY AND THE REGIONS OF THE UNITED-STATES

We use regression and factor analyses to explain intermetropolitan var iation in the proportion of jobs in disaggregated service sectors in A merican metropolitan areas. Central place theory postulates of central ly located establishments serving a surrounding complementary region p artially explain the positive relationship between metropolitan size a nd the proportion of jobs in an area in services. Regional variation i n demand following several decades of substantial shifts in population and economic output is an additional influence. Intermetropolitan clu stering of service sectors is also occurring. A factor analysis of emp loyment proportions in twenty-two disaggregate service sectors identif ied five intersectoral service clusters. The factor analysis accounted for substantially more variance than the regression equations. We int erpret this result as evidence of the emergence of service-based spati al industrial complexes. We argue that agglomeration of information-in tensive intermediate services is driven by an attraction to labor mark ets endowed with pools of skilled professionals who can flexibly apply their talents in a variety of sectors. Unusual demographic characteri stics of some metropolitan areas probably explain clusters of final de mand services.