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Agglomeration and workplace training: knowledge spillovers versus poaching

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  • Giuseppe Croce
  • Edoardo di Porto
  • Emanuela Ghignoni
  • Andrea Ricci

Abstract

Agglomeration and workplace training: knowledge spillovers versus poaching. Regional Studies. The paper aims at ascertaining whether and how a local agglomeration of highly educated employers affects firms’ propensity to invest in training. On a theoretical ground such agglomeration may favour two different scenarios: a knowledge spillover effect may foster larger investments, or a poaching effect may prevail inducing more competition and less training. Econometric estimates find that in the Italian environment, where small businesses are prominent, the second effect is stronger. Endogeneity issues are addressed by adopting an instrumental variables (IV) approach. Moreover, estimates show that an employer’s higher educational level is associated with a greater propensity to sponsor training.

Suggested Citation

  • Giuseppe Croce & Edoardo di Porto & Emanuela Ghignoni & Andrea Ricci, 2017. "Agglomeration and workplace training: knowledge spillovers versus poaching," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1635-1651, November.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:11:p:1635-1651
    DOI: 10.1080/00343404.2016.1230270
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    References listed on IDEAS

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    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
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    Cited by:

    1. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    2. Anne Margarian & Cécile Détang-Dessendre & Aleksandra Barczak & Corinne Tanguy, 2022. "Endogenous rural dynamics: an analysis of labour markets, human resource practices and firm performance," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.

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