Do Airports Boost Economic Development by Attracting Talent? An Empirical Investigation at the Subcounty Level

Objective: The objectives of this study were to examine (1) the linkage from airports to regional talent distribution and (2) the effect of talent on regional economic development. Methods: Using the data collected in Wisconsin at the municipal level, a subcounty level, in a region of the North Central United States from 1970 to 2010 and the American Community Survey 2006–2010 five-year estimates, and random effects models and structural equation models, we employ descriptive and inferential statistics to examine the linkage from airports to talent to regional economic development. Results: We find that the farther a location is away from the airport, the lower its talent share tends to be, while greater passenger flow at the nearest airport increases a location's talent share. Given the quantity of passenger flow, a longer distance from the airport also reduces a location's talent share. The results furthermore suggest that economic development is impacted positively by passenger flow and talent share and negatively by distance to an airport. Conclusion: Our results underscore the intermediate role of talent between airports and regional economic development; building the linkage from airports to talent within the context of regional economic development provides important insights for local policy making aimed at attracting talented migrants.