model that incorporates spatial linkages in goods markets (trade) and factor markets (commuting and migration). We show that … local employment elasticities differ substantially across U.S. counties and commuting zones in ways that are not well … explained by standard empirical controls but are captured by commuting measures. We provide independent evidence for these …

externality, but entails commuting costs. Switching between modes of labor delivery is costly, and workers face idiosyncratic …