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Technology and industrial agglomeration: Evidence from computer usage

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  • Christopher H. Wheeler

Abstract

Although the association between industrial agglomeration and productivity has been widely examined and documented, little work has explored the possibility that these ‘external’ productivity shifts are the product of more advanced technologies. This paper offers a look at this hypothesis using data on individual‐level computer usage across a sample of U.S. metropolitan areas over the years 1984, 1989, 1993 and 1997. The results indicate that, for a wide array of industries at the two, three, and four digit SIC level, an industry's scale within a metropolitan area is positively associated with the frequency of computer use by its workers. However, in spite of these observable differences in workplace technology, I also find that estimated localization effects on wages are largely not explained by computer usage. Even after controlling for computer use, there remain significant own‐industry scale effects in labour earnings. Resumen Aunque la asociación entre aglomeración industrial y productividad ha sido ampliamente estudiada y documentada, pocos trabajos han explorado la posibilidad de que estos cambios ‘externos’ de productividad sean el resultado de tecnologías más avanzadas. Este artículo explora esta hipótesis utilizando datos sobre la utilización de computadoras a nivel individual para una muestra de áreas metropolitanas de los EE.UU. durante los años 1984, 1989, 1993, y 1997. Los resultados indican que, para una larga serie de industrias de los niveles de 2, 3, y 4 dígitos de la SIC, en la escala de una industria dentro de un área metropolitana está asociada positivamente con la frecuencia de utilización de computadoras por sus trabajadores. Sin embargo, a pesar de estas diferencias observables en cuanto a tecnología en el lugar de trabajo, he encontrado también que los efectos de localización estimados sobre los salarios no están en gran medida explicados por la utilización de computadoras. Incluso después de controlar el uso de computadoras, aún existen efectos significativos, a la escala de la propia industria, sobre los salarios de la mano de obra.

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  • Christopher H. Wheeler, 2009. "Technology and industrial agglomeration: Evidence from computer usage," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 43-62, March.
    • Handle: RePEc:bla:presci:v:88:y:2009:i:1:p:43-62
    DOI: 10.1111/j.1435-5957.2008.00186.x
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