This study examines the role of recreational amenities, both within the county as well in neighboring counties, on employment growth using data from 618 counties in the U.S. Midwest. Using a wide range of amenity variables and spatial econometric methods, we find that natural and recreational amenities have played a role in non-farm employment growth over the years 1969 to 2000. Further, the results also indicate that the presence of recreational amenities in neighboring counties have also played an important role in explaining employment growth as opposed to only amenities within the county itself.