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Labor Mobility And Spatial Density

Author

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  • Andersson, Martin

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

  • Thulin, Per

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

Abstract

This paper focuses on a much cited but seldom measured micro-foundation for agglomerations: inter-firm labor mobility. Labor mobility has been advanced as a vehicle for knowledge flows and labor market efficiency, and is often maintained to be an important source of agglomeration economies. Based on matched employer-employee data, we estimate the influence that spatial employment density has on the probability of inter-firm job-switching, while controlling for ample attributes of each worker and employer. The rate of inter-firm labor mobility varies substantially across regions and we document a systematic and robust positive influence of density on the probability of job switching. The likelihood that such switching is intra-regional is significantly higher if the employees operate in denser regions, verifying that labor mobility (and thus the effects mediated by it) is indeed localized. Higher rates of inter-firm labor mobility appear as a likely mechanism behind the empirically verified productivity advantage of dense regions.

Suggested Citation

  • Andersson, Martin & Thulin, Per, 2011. "Labor Mobility And Spatial Density," Working Paper Series in Economics and Institutions of Innovation 248, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0248
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    References listed on IDEAS

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    1. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    2. Alessandra Faggian & Philip McCann & Stephen Sheppard, 2007. "Some Evidence That Women Are More Mobile Than Men: Gender Differences In U.K. Graduate Migration Behavior," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 517-539, August.
    3. Brülhart, Marius & Mathys, Nicole A., 2008. "Sectoral agglomeration economies in a panel of European regions," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 348-362, July.
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    Cited by:

    1. Ron Boschma & Rikard H. Eriksson & Urban Lindgren, 2014. "Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1669-1690, October.
    2. Johansson, Börje & Lööf, Hans, 2016. "Innovation Strategies Combining Internal and External Knowledge," Working Paper Series in Economics and Institutions of Innovation 436, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Ana Condeço-Melhorado & Aura Reggiani & Javier Gutiérrez (ed.), 2014. "Accessibility and Spatial Interaction," Books, Edward Elgar Publishing, number 15267.
    4. Urban Gråsjö & Charlie Karlsson, 2014. "Accessibility: an underused analytical and empirical tool in spatial economics," Chapters, in: Ana Condeço-Melhorado & Aura Reggiani & Javier Gutiérrez (ed.), Accessibility and Spatial Interaction, chapter 11, pages 211-236, Edward Elgar Publishing.

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    More about this item

    Keywords

    job-switching; inter-firm labor mobility; agglomeration economies; external economies; micro-foundations; density;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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