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Location Decisions in a Changing Labour Market Environment

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  • Björn Frank

Abstract

We study the location of various film-related services (such as camera rental, casting agencies or pyrotechnic services), the main determinant of interest being the human capital specificity. We show that firms which supply services with a lower firm specificity locate farther away from one another, and argue that it can be concluded that the "poaching" argument (fear of employees leaving for a competitor in large regional labour markets) has greater practical weight than the Marshallian labour pooling mechanism

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.40952.de/dp380.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 380.

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Length: 15 p.
Date of creation: 2003
Date of revision:
Handle: RePEc:diw:diwwpp:dp380

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Keywords: agglomeration; film industry; flexible specialisation; labour pooling; poaching; regional labour markets; turnover;

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References

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  1. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 105(5), pages 889-927, October.
  2. Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
  3. Françoise Benhamou, 2000. "The Opposition between Two Models of Labour Market Adjustment: The Case of Audiovisual and Performing Arts Activities in France and Great Britain over a Ten Year Period," Journal of Cultural Economics, Springer, vol. 24(4), pages 301-319, November.
  4. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  5. Cappelli, Peter, 2004. "Why do employers pay for college?," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 213-241.
  6. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
  7. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 353-76, July.
  8. Storper, Michael, 1989. "The Transition to Flexible Specialisation in the U.S. Film Industry: External Economies, the Division of Labour, and the Crossing of Industrial Divides," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 273-305, June.
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Cited by:
  1. Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
  2. Kristjan-Olari Leping, 2005. "Measuring the Specificity of Human Capital: a Skill-based Approach," Working Papers, Tallinn School of Economics and Business Administration, Tallinn University of Technology 134, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
  3. Kristjan-Olari Leping, 2009. "Measuring the Specificity of Human Capital:a Skill-based Approach," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(1), pages 39-54, July.

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