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Labor Mobility, Knowledge Diffusion And Regional Growth

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  • Thulin, Per

    ()
    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper investigates the relationship between inter-firm labor mobility and regional productivity growth. Previous studies have shown that density is positively correlated with growth. I claim that it is not density in itself, but rather the attributes associated with it that drives economic growth. One such attribute is the increased possibility for labor mobility and knowledge diffusion that follows when firms and individuals locate in close proximity to each other. This hypothesis is tested using a matched employer-employee dataset where regional labor mobility is instrumented with density. The result shows that labor mobility increases regional growth rates.

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Bibliographic Info

Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 209.

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Length: 41 pages
Date of creation: 18 Dec 2009
Date of revision:
Handle: RePEc:hhs:cesisp:0209

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Keywords: Labor mobility; regional growth; agglomeration economies;

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References

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  1. Almeida, Rita, 2005. "Local economic structure and growth," Policy Research Working Paper Series 3728, The World Bank.
  2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
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  8. Görg, Holger & Strobl, Eric, 2002. "Spillovers From Foreign Firms Through Worker Mobility: An Empirical Investigation," IZA Discussion Papers 591, Institute for the Study of Labor (IZA).
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  10. repec:fth:stanho:e-95-4 is not listed on IDEAS
  11. Alexander Oettl & Ajay Agrawal, 2008. "International labor mobility and knowledge flow externalities," Journal of International Business Studies, Palgrave Macmillan, vol. 39(8), pages 1242-1260, December.
  12. Zoltan J. Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Papers on Entrepreneurship, Growth and Public Policy 2004-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  13. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
  14. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
  15. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer, vol. 43(1), pages 159-180, March.
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Cited by:
  1. Johannes Pöschl & Neil Foster, 2013. "Productivity Effects of Knowledge Transfers through Labour Mobility," FIW Working Paper series 117, FIW.

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