Airports have a small benefit on employment in local service sectors, but no measurable effect on others

The U.S. contains hundreds of commercial airports, which have massive positive economic effects through transport and trade access. But can cities justify their desires to build new airports, or enlarge old ones, on the basis that they increase local employment levels as well? Using data from 48 U.S. states, Nicholas Sheard takes a close look at how airports, and airport sizes, affect sectoral employment in cities. He finds that while airports have a positive effect on local employment in ‘tradable’ services, such as publishing and financial services, they have next to no effect on manufacturing or on other employment sectors.