Agglomeration and the success of arts majors working in entrepreneurship and innovation

In this study we look to understand whether living or working in a ‘hub’ increases the likelihood that college graduates with degrees in the arts are working in entrepreneurial occupations or innovative industries, and whether it increases their success in such occupations/industries. While the share of arts graduates working in the arts is low, recent empirical evidence suggests that large shares of arts graduates are working in occupations/industries that can be classified as entrepreneurial or innovative, potentially because of their creative education/training. However, little is known about where such works takes place, so we explore whether proximity to other creatives and/or entrepreneurial/innovative workers has an influence. The theory underpinning our work is the economics of agglomeration, as ample research on artists suggests that creatives benefit from proximity to other creatives. The popularity of Silicon Valley as a home for start-ups and tech firms suggests agglomeration is important in entrepreneurship and innovation as well. Using American Community Survey data, we find that living or working in a ‘hub’ has positive impacts on the likelihood arts graduates are working in occupations/industries that are entrepreneurial/innovative and on earnings in such areas, suggesting that agglomeration may have positive impacts on productivity.