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Location Decisions in a Changing Labour Market Environment


  • Björn Frank


We study the location of various film-related services (such as camera rental, casting agencies or pyrotechnic services), the main determinant of interest being the human capital specificity. We show that firms which supply services with a lower firm specificity locate farther away from one another, and argue that it can be concluded that the "poaching" argument (fear of employees leaving for a competitor in large regional labour markets) has greater practical weight than the Marshallian labour pooling mechanism

Suggested Citation

  • Björn Frank, 2003. "Location Decisions in a Changing Labour Market Environment," Discussion Papers of DIW Berlin 380, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp380

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    References listed on IDEAS

    1. Ron A. Boschma & Michael Fritsch, 2007. "Creative Class and Regional Growth - Empirical Evidence from Eight European Countries," Jena Economic Research Papers 2007-066, Friedrich-Schiller-University Jena.
    2. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1409-1448.
    3. Michael Fritsch, 2007. "The Geography and the Effect of Creative People in Germany," Jena Economic Research Papers 2007-001, Friedrich-Schiller-University Jena.
    4. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    5. Cappelli, Peter, 2004. "Why do employers pay for college?," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 213-241.
    6. Storper, Michael, 1989. "The Transition to Flexible Specialisation in the U.S. Film Industry: External Economies, the Division of Labour, and the Crossing of Industrial Divides," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 273-305, June.
    7. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 353-376, July.
    8. Françoise Benhamou, 2000. "The Opposition between Two Models of Labour Market Adjustment: The Case of Audiovisual and Performing Arts Activities in France and Great Britain over a Ten Year Period," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(4), pages 301-319, November.
    9. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
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    Cited by:

    1. Anne Otto & Dirk Fornahl, 2010. "Origins of Human Capital in Clusters: Regional, Industrial and Academic Transitions in Media Clusters in Germany," Chapters,in: Emerging Clusters, chapter 5 Edward Elgar Publishing.
    2. Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
    3. Kristjan-Olari Leping, 2009. "Measuring the Specificity of Human Capital:a Skill-based Approach," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(1), pages 39-54, July.
    4. Kristjan-Olari Leping, 2005. "Measuring the Specificity of Human Capital: a Skill-based Approach," Working Papers 134, Tallinn School of Economics and Business Administration, Tallinn University of Technology.

    More about this item


    agglomeration; film industry; flexible specialisation; labour pooling; poaching; regional labour markets; turnover;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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