While most current empirical urban-growth models emphasize the role of urban labor market dynamics, there has been little discussion of alternative theories of labor market behaviour. A review of theories of job search by labor force members and job creation by firms is undertaken. This reveals that current urban-growth models are based on, at best, an overly-simplified view of labor market processes. A better treatment of long-distance job search and the relationship between search and migration is seen as a high priority in future work. Without such work, a true test of industry versus household-initiated regional development is not possible.