the size of the multiplier effect on the non-tradable sector is determined by the interplay of three factors: consumer preference for non-tradables, the types of jobs created, and the elasticity of local labor and housing supply. consumer preference refers to certain non-tradable goods and services requiring more workers to provide them than others. if the tradable industry has high demand for a type of non-tradable good that needs more workers to be produced then the multiplier will be higher. types of jobs created refers to the fact that certain job categories generally have higher pay than others. higher pay results in larger amounts of disposable income that can be spent on the local economy. this results in a higher multiplier. elasticity of local labor and housing supply refers to that the fact whenever there is an influx of new people with higher than average wages to an area, average prices will rise. this can in turn push out some residents with below average wages into lower cost areas. this results in a lower multiplier.