Job-hopping in Silicon Valley: some evidence concerning the micro-foundations of a high technology cluster
AbstractIn Silicon Valley's computer cluster, skilled employees are reported to move rapidly between competing firms. If true, this job-hopping facilitates the reallocation of resources towards firms with superior innovations, but it also creates human capital externalities that reduce incentives to invest in new knowledge. Outside of California, employers can use non-compete agreements to reduce mobility costs, but these agreements are unenforceable under California law. Until now, the claim of "hyper-mobility" of workers in Silicon has not been rigorously investigated. Using new data on labor mobility we find higher rates of job-hopping for college-educated men in Silicon Valley's computer industry than in computer clusters located out of the state. Mobility rates in other California computer clusters are similar to Silicon Valley's, suggesting some role for state laws restricting non-compete agreements. Outside of the computer industry, California's mobility rates are no higher than elsewhere.
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Bibliographic InfoPaper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2005-11.
Date of creation: 2005
Date of revision:
Other versions of this item:
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2006. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 472-481, August.
- Fallick, Bruce & Fleischman, Charles A. & Rebitzer, James B., 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," IZA Discussion Papers 1799, Institute for the Study of Labor (IZA).
- Bruce Fallick & Charles A. Fleischmann & James B. Rebitzer, 2005. "Job Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," NBER Working Papers 11710, National Bureau of Economic Research, Inc.
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," Labor and Demography 0512004, EconWPA.
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," Economics Working Paper Archive wp_432, Levy Economics Institute, The.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-23 (All new papers)
- NEP-BEC-2005-05-23 (Business Economics)
- NEP-INO-2005-05-23 (Innovation)
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