A market for industrial locations has emerged in recent years. On one side of the market, cities compete with each other to attract jobs; on the other side, firms seek subsidy payments for providing jobs. These developments have been noted, but until now have not been viewed as an explicit market. This article provides evidence of the market's development and identifies factors that have stimulated the market's growth. It demonstrates that costs of using the market have declined, but benefits have increased. The study goes on to show that the market can be efficient under certain conditions, but that major impediments to efficiency exist. Finally, it discusses how the market for jobs is likely to evolve.