This study investigates the effect of local labor demand on the employment status and the choice of work location (hometown, capital region, or elsewhere) of four-year-college graduates from non-capital regions by measuring local demand using the Bartik instrument and merging individual data. Based on the results of this study, firstly, the degree of a positive shock to local labor demand is higher in the capital region than in the non-capital regions. This suggests that local labor demand is favorable in the capital region. Secondly, as the local labor demand increases, the probability of hometown employment increases, whereas that in the capital region decreases. Specifically, a 10% positive local labor demand shock increases the probability of hometown employment by 0.1-0.2% and decreases the probability of capital region employment by 0.2-0.3%. Thirdly, compared to male graduates, female graduates are more sensitive to local labor demand conditions. These results imply that current general policies related to national balanced development may contribute to regional human resource cultivation. Furthermore, strategic partnerships between local universities and public institutions transferred to non-capital regions should be constructed in order to create local labor demands.