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Does spatial employment density spur inter-firm job switching?

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  • Martin Andersson

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  • Per Thulin

Abstract

Inter-firm job switching of workers is a much cited but seldom measured source of the productivity advantages of spatial employment density. It has been advanced as a conduit for localized knowledge flows as well as labor market matching efficiency. Using a matched employer–employee dataset for Sweden, we estimate the influence spatial employment density has on the probability of inter-firm job switching of private sector workers. Our estimates suggest that a doubling of employment density per square kilometer increases the probability that a random worker switches employer by 0.2 % points. The same effect is substantially higher for more skilled workers. While the effect of a doubling of density is limited, the actual differences in density across the regions in our data amount to a factor over 40, rendering differences in density an important explanation for regional variations in rates of inter-firm job switching. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Martin Andersson & Per Thulin, 2013. "Does spatial employment density spur inter-firm job switching?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 245-272, August.
  • Handle: RePEc:spr:anresc:v:51:y:2013:i:1:p:245-272
    DOI: 10.1007/s00168-012-0544-y
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Niebuhr, Annekatrin, 2016. "Benefits of dense labour markets - Evidence from transitions to employment in Germany," Annual Conference 2016 (Augsburg): Demographic Change 145715, Verein für Socialpolitik / German Economic Association.
    2. Thomas Åstebro & Pontus Braunerhjelm & Anders Broström, 2013. "Does academic entrepreneurship pay?," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 281-311, February.
    3. Martin Andersson & Johan Klaesson & Johan P Larsson, 2014. "The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 727-747, November.
    4. Stockinger, Bastian & Zwick, Thomas, 2016. "Apprentice Poaching in Regional Labor Markets," Annual Conference 2016 (Augsburg): Demographic Change 145565, Verein für Socialpolitik / German Economic Association.
    5. Stefan Leknes, 2017. "Churning in thick labor markets. Evidence of heterogeneous responses along the skill and experience gradients," Discussion Papers 866, Statistics Norway, Research Department.

    More about this item

    Keywords

    J61; J62; R12; R11;

    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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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