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Marshallian labor market pooling: evidence from Italy

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Listed:
  • Monica Andini

    () (Bank of Italy)

  • Guido de Blasio

    () (Bank of Italy)

  • Gilles Duranton

    () (Wharton School, University of Pennsylvania)

  • William C. Strange

    () (Rotman School of Management, University of Toronto)

Abstract

This paper employs a unique Italian data source to take a comprehensive approach to labor market pooling. It jointly considers many different aspects of the agglomeration - labor market relationship, including turnover, learning, matching, and hold up. It also considers labor market pooling from the perspective of both workers and firms and across a range of industries. Overall, the paper finds some support for theories of labor market pooling, but the support is weak. Specifically, there is a general positive relationship of turnover to local population density, which is consistent with theories of agglomeration and uncertainty. There is also evidence of on-the-job learning that is consistent with theories of labor pooling, labor poaching, and hold up. In addition, the paper provides evidence consistent with agglomeration improving job matches. However, the labor market pooling gains that we measure are small in magnitude and seem unlikely to account for a substantial share of the agglomeration benefits accruing to Italian workers and firms.

Suggested Citation

  • Monica Andini & Guido de Blasio & Gilles Duranton & William C. Strange, 2013. "Marshallian labor market pooling: evidence from Italy," Temi di discussione (Economic working papers) 922, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_922_13
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    Cited by:

    1. Roberto BASILE & Cristiana DONATI & Rosanna PITTIGLIO, 2013. "Industry Structure And Employment Growth: Evidence From Semiparametric Geoadditive Models," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 121-160.
    2. repec:sls:ipmsls:v:32:y:2017:9 is not listed on IDEAS
    3. Brahim Boualam, 2014. "Getting a First Job: Quality of the Labor Matching in French Cities," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 14094, Institut d'Economie et Econométrie, Université de Genève.
    4. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    5. Abel, Jaison R. & Deitz, Richard, 2015. "Agglomeration and job matching among college graduates," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 14-24.
    6. Stockinger, Bastian & Zwick, Thomas, 2016. "Apprentice Poaching in Regional Labor Markets," Annual Conference 2016 (Augsburg): Demographic Change 145565, Verein für Socialpolitik / German Economic Association.
    7. Yang, Guangliang & Li, Lixing & Fu, Shihe, 2017. "Do Rural Migrants Benefit from Labor Market Agglomeration Economies? Evidence from Chinese Cities," MPRA Paper 80713, University Library of Munich, Germany.
    8. Tomoya Mori, 2017. "Agglomeration," KIER Working Papers 960, Kyoto University, Institute of Economic Research.
    9. Andini, Monica & de Blasio, Guido & Duranton, Gilles & Strange, William C., 2013. "Marshallian labour market pooling: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 1008-1022.
    10. Lutgen, Vanessa & Van der Linden, Bruno, 2015. "Regional equilibrium unemployment theory at the age of the Internet," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 50-67.
    11. Pierre-Philippe Combes & Laurent Gobillon, 2014. "The Empirics of Agglomeration Economies," Working Papers halshs-01071761, HAL.
    12. Berlingieri, Francesco, 2017. "Local labor market size and qualification mismatch," ZEW Discussion Papers 17-055, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. repec:zbw:espost:168356 is not listed on IDEAS
    14. Brunello, Giorgio & Langella, Monica, 2016. "Local agglomeration, entrepreneurship and the 2008 recession: Evidence from Italian industrial districts," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 104-114.
    15. Berlingieri, Francesco, 2015. "Local labour market size and qualification mismatch," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113102, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    local labor markets; matching; turnover; learning; hold-up; agglomeration;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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