We study local employment, establishment density, and establishment size across industries delivering final consumption, which comprise a substantial fraction of production, shape local amenities, and pay different wages. In a stylized model of consumer mobility, lower industry storability/durability concentrates demand in space, increasing equilibrium employment. Credit card transactions data show that consumer mobility is limited and varies substantially across sectors; moreover, expenditure declines more rapidly with distance in sectors transacted more frequently. Lower storability/durability, proxied by average transaction frequency, increases a sector's local employment via higher establishment density. Variation in consumer mobility is as economically significant as consumers' expenditure shares.
First version, January 2020
R10: General Regional Economics (includes Regional Data)
R20: Urban, Rural, Regional, Real Estate, and Transportation Economics: Household Analysis: General
F10: Trade: General
F14: Empirical Studies of Trade
L80: Industry Studies: Services: General