Agglomeration economies: new evidence on IT employment growth in Italy
AbstractThis paper uses Local Labour Market Areas (LLMA) data to investigate the dynamics of employment in the Information Technology (IT) sector in Italy 2001-2005. Adopting the framework suggested by Glaeser et al. (1992) and Combes (2000), the aim is to test if agglomeration forces might significantly affect IT local growth. The basic OLS results are broadly consistent with those of earlier studies. In particular, IT employment growth is enhanced by industrial diversity (Jacobs externalities) and by plant size (economies of scale). At the same time, LLMAs with higher IT concentration are associated with lower employment growth rates. As a robustness check, quantile regression analysis is performed. This additional set of results reaveals that the role of agglomeration forces is different across IT growth levels.
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Bibliographic InfoPaper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2009-EP08.
Length: 14 pages
Date of creation: 2009
Date of revision:
agglomeration economies; information technology; LLMA; Italy; quantile regression;
Find related papers by JEL classification:
- 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)
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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