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Firm--worker matching in industrial clusters

Author

Listed:
  • Octávio Figueiredo
  • Paulo Guimarães
  • Douglas Woodward

Abstract

In this paper we use a novel approach and a large Portuguese employer-employee panel data set to study the hypothesis that industrial agglomeration improves the quality of the firm-worker matching process. Our method makes use of recent developments in the estimation and analysis of models with high-dimensional fixed effects. Using wage regressions with controls for multiple sources of observed and unobserved heterogeneity we find little evidence that the quality of matching increases with firm’s clustering within the same industry. This result supports Freedman’s (2008) analysis using U.S. data.
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Suggested Citation

  • Octávio Figueiredo & Paulo Guimarães & Douglas Woodward, 2014. "Firm--worker matching in industrial clusters," Journal of Economic Geography, Oxford University Press, vol. 14(1), pages 1-19, January.
    • Handle: RePEc:oup:jecgeo:v:14:y:2014:i:1:p:1-19
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    File URL: http://hdl.handle.net/10.1093/jeg/lbt009
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    Cited by:

    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    2. Christopher Goetz & Henry Hyatt & Erika McEntarfer & Kristin Sandusky, 2016. "The Promise and Potential of Linked Employer-Employee Data for Entrepreneurship Research," NBER Chapters, in: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges, pages 433-462, National Bureau of Economic Research, Inc.
    3. Martins, Pedro S. & Melo, António, 2024. "Making their own weather? Estimating employer labour-market power and its wage effects," Journal of Urban Economics, Elsevier, vol. 139(C).
    4. Leknes, Stefan & Rattsø, Jørn & Stokke, Hildegunn E., 2022. "Assortative labor matching, city size, and the education level of workers," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    5. Woodcock, Simon D., 2023. "The determinants of displaced workers’ wages: Sorting, matching, selection, and the Hartz reforms," Journal of Econometrics, Elsevier, vol. 233(2), pages 568-595.
    6. Yifei Wang, 2026. "Occupational agglomeration and R&D worker mobility: career opportunities and wage premiums," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 75(1), pages 1-29, March.
    7. Vial, Virginie & Hanoteau, Julien, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," World Development, Elsevier, vol. 74(C), pages 142-157.

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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