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Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster

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Author Info
Bruce Fallick (Federal Reserve System)
Charles A. Fleischman (Federal Reserve System)
James B. Rebitzer (Case Western Reserve University, The Levy Economics Institute, & The National Bureau of Economic Research)

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Abstract

Observers of Silicon Valley’s computer cluster report that employees move rapidly between competing firms, but evidence supporting this claim is scarce. Job-hopping is important in computer clusters because it facilitates the reallocation of talent and resources toward firms with superior innovations. 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 features of California law that make non-compete agreements unenforceable. Consistent with our model of innovation, mobility rates outside of computer industries are no higher in California than elsewhere.

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Publisher Info
Paper provided by EconWPA in its series Labor and Demography with number 0512004.

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Length: 24 pages
Date of creation: 02 Dec 2005
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Handle: RePEc:wpa:wuwpla:0512004

Note: Type of Document - pdf; pages: 24
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Web page: http://129.3.20.41

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Related research
Keywords: agglomerations; clusters; non-compete agreements; human capital; innovation; Silicon Valley; modular production.;

Other versions of this item:

Find related papers by JEL classification:
R12 - Urban, Rural, and Regional 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
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
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  2. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August. [Downloadable!] (restricted)
  3. Ajay Agrawal & Iain Cockburn & John McHale, 2003. "Gone But Not Forgotten: Labor Flows, Knowledge Spillovers, and Enduring Social Capital," NBER Working Papers 9950, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Rotemberg, Julio J. & Saloner, Garth, 2000. "Competition and human capital accumulation: a theory of interregional specialization and trade," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 373-404, July. [Downloadable!] (restricted)
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  5. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June. [Downloadable!]
  6. Acemoglu, Daron, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 445-64, July. [Downloadable!] (restricted)
  7. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212. [Downloadable!] (restricted)
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  8. Jarle Møen, 2000. "Is Mobility of Technical Personnel a Source of R&D Spillovers?," NBER Working Papers 7834, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  10. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 545-546, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Edward L. Glaeser & William R. Kerr, 2008. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Harvard Business School Working Papers 09-055, Harvard Business School. [Downloadable!]
    Other versions:
  2. Jean-Etienne De Bettignies & Gilles Chemla, 2008. "Corporate Venturing, Allocation of Talent, and Competition for Star Managers," Post-Print halshs-00365942_v1, HAL. [Downloadable!]
  3. Cécile Aubert & Oliver Falck & Stephan Heblich, 2008. "Subsidizing National Champions: An Evolutionary Perspective," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Evers, Hans-Dieter, 2008. "Knowledge hubs and knowledge clusters: Designing a knowledge architecture for development," MPRA Paper 8778, University Library of Munich, Germany. [Downloadable!]
  5. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2008. "Labour mobility, related variety and the performance of plants: A Swedish study," Papers in Evolutionary Economic Geography (PEEG) 0809, Utrecht University, Section of Economic Geography, revised May 2008. [Downloadable!]
  6. Natalia Mishagina, 2007. "Empirical Analysis of Career Transitions of Sciences and Engineering Doctorates in the US," Working Papers 1137, Queen's University, Department of Economics. [Downloadable!]
  7. Oliver Falck & Michael Fritsch & Stephan Heblich, 2008. "The Apple doesn't Fall far from the Tree: Location of Start-Ups Relative to Incumbents," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  8. Hoyt Bleakley & Jeffrey Lin, 2007. "Thick-market effects and churning in the labor market: evidence from U.S. cities," Working Papers 07-23, Federal Reserve Bank of Philadelphia. [Downloadable!]
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