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The Effect Of Urbanization On Labor Turnover

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  • Miles M. Finney
  • Janet E. Kohlhase

Abstract

ABSTRACT The paper empirically examines labor market matching as a source of urban agglomeration economies. We work from the hypothesis that job turnover leads to tighter labor matches and estimate the relationship between urbanization and the job mobility of young men. Using a panel from the National Longitudinal Survey of Youth, we find evidence that young men change jobs more frequently in their early career if they live in larger or in more educated urban areas. The sensitivity of the results to whether the young men were “movers” or “stayers” suggests the possible endogeneity of location.

Suggested Citation

  • Miles M. Finney & Janet E. Kohlhase, 2008. "The Effect Of Urbanization On Labor Turnover," Journal of Regional Science, Wiley Blackwell, vol. 48(2), pages 311-328, May.
  • Handle: RePEc:bla:jregsc:v:48:y:2008:i:2:p:311-328
    DOI: 10.1111/j.1467-9787.2008.00553.x
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    Cited by:

    1. Neng Shen & Yuqing Zhao & Qunwei Wang, 2018. "Diversified Agglomeration, Specialized Agglomeration, and Emission Reduction Effect—A Nonlinear Test Based on Chinese City Data," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    2. Aviad Tur-Sinai, 2020. "The effect of terror and economic sector in early career years on future career path," Empirical Economics, Springer, vol. 59(5), pages 2153-2184, November.
    3. John C. Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129, June.
    4. Martin Andersson & Davide Castellani & Claudio Fassio & Viroj Jienwatcharamongkhol, 2022. "Leaving the multinational: The likelihood and nature of employee mobility from MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 936-949, July.
    5. Hinz, Tina & Lechmann, Daniel S. J., 2019. "The role of job satisfaction and local labor market conditions for the dissolution of worker-job matches," Discussion Papers 109, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    6. Douglas J. Krupka & Douglas S. Noonan, 2013. "City Air and City Markets," International Regional Science Review, , vol. 36(2), pages 183-206, April.
    7. Catalina Jordi & Miguel Manjón, 2014. "The determinants of urban (un)employment duration: evidence from Barcelona," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 515-556, September.
    8. Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
    9. Daniel F. Heuermann, 2009. "Career Networks and Job Matching - Evidence on the Microeconomic Foundations of Human Capital Externalities," IAAEG Discussion Papers until 2011 200901, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    10. Jiangsheng Chen & Hong Yang, 2016. "Geographical Mobility, Income, Life Satisfaction and Family Size Preferences: An Empirical Study on Rural Households in Shaanxi and Henan Provinces in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 277-290, October.
    11. Niebuhr, Annekatrin, 2016. "Benefits of dense labour markets - Evidence from transitions to employment in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145715, Verein für Socialpolitik / German Economic Association.
    12. Kristin Kronenberg & Martin Carree, 2012. "On the Move: Determinants of Job and Residential Mobility in Different Sectors," Urban Studies, Urban Studies Journal Limited, vol. 49(16), pages 3679-3698, December.
    13. Bachmann, Ronald & Beimann, Boris & Bredtmann, Julia & David, Peggy & Ehlert, Christoph & Kassenböhmer, Sonja & Schaffner, Sandra & Siemers, Lars, 2011. "Studies on flexicurity Lot 1: Study on various aspects of labour market performance using micro data from the European Union statistics on income and living conditions (EU-SILC). Contract No. VC/2010/," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72620.
    14. Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
    15. Genevieve Giuliano & Sanggyun Kang & Quan Yuan, 2019. "Agglomeration economies and evolving urban form," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 377-398, December.
    16. Patrícia Araújo Amarante & Magno Vamberto Batista Silva & Paulo Aguiar Monte, 2019. "Does the spatial density of employment stimulate inter-firm worker mobility? An analysis of Brazilian municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 85-115, August.
    17. Martin Andersson & Per Thulin, 2013. "Does spatial employment density spur inter-firm job switching?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 245-272, August.
    18. Meihong Dai & Xianneng Li & Yuduo Lu, 2017. "How Urbanization Economies Impact TFP of R&D Performers: Evidence from China," Sustainability, MDPI, vol. 9(10), pages 1-17, September.
    19. Tamás Lahdelma, 2022. "Localized labor flow networks in knowledge‐intensive industries," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1414-1441, November.
    20. Jiangsheng Chen & Caixian Cui, 2018. "Large City or Small Town: an Empirical Analysis of the Effects of Migration Strategies of Rural Households on Income in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(1), pages 211-228, March.
    21. Backman, Mikaela, 2013. "Regional Variation of Returns to Education," Working Paper Series in Economics and Institutions of Innovation 300, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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