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Spatial persistence of agglomeration in software publishing

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  • Deltas, George
  • De Silva, Dakshina G.
  • McComb, Robert P.

Abstract

We estimate the effects of industrial localization on the spatial persistence of employment in the software industry, using establishment data from Texas for the 2000–2006 period. Locations with an initial concentration of software employment retain an excess number of employees, beyond that expected from job turnover and job persistence at the establishment level. This is not driven by differential establishment growth or survival, but it is due to (a) the retention by establishments in a location of jobs lost by other establishments in that location, and (b) the propensity of software establishments to enter in locations with prior software establishment presence. These findings are more consistent with labor channel effects than with disembodied knowledge spillovers.

Suggested Citation

  • Deltas, George & De Silva, Dakshina G. & McComb, Robert P., 2019. "Spatial persistence of agglomeration in software publishing," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 544-565.
  • Handle: RePEc:eee:jeborg:v:166:y:2019:i:c:p:544-565
    DOI: 10.1016/j.jebo.2019.07.020
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    More about this item

    Keywords

    Agglomeration economies; Labor pools; Knowledge spillovers; Firm growth; Spatial effects;

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • 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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