Agglomeration economies: the heterogeneous contribution of human capital and value chains
We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-specific benefits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry’s coagglomeration patterns is relevant for predicting patterns of city-industry employment growth.
|Date of creation:||Aug 2016|
|Date of revision:||Aug 2016|
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- Frank Neffke & Martin Henning & Ron Boschma, 2011.
"How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions,"
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- Hausmann, Ricardo & Hidalgo, Cesar A. & Stock, Daniel P. & Yildirim, Muhammed A., 2014. "Implied Comparative Advantage," Working Paper Series rwp14-003, Harvard University, John F. Kennedy School of Government.
- Ricardo Hausmann & Cesar A. Hidalgo & Daniel Stock & Muhammed A. Yildirim, 2014. "Implied Comparative Advantage," CID Working Papers 276, Center for International Development at Harvard University.
- Henri L.F. Groot & Jacques Poot & Martijn J. Smit, 2016. "Which Agglomeration Externalities Matter Most And Why?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 756-782, 09.
- Dauth, Wolfgang, 2010. "Agglomeration and regional employment growth," IAB Discussion Paper 201007, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. Full references (including those not matched with items on IDEAS)
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