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Worker turnover, industry localization, and producer size

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  • Christopher H. Wheeler

Abstract

Empirically, large employers have been shown to devote greater resources to filling vacancies than small employers. Following this evidence, this paper offers a theory of producer size based on labor market search, whereby a key factor in the determination of producer's total employment is the ease with which workers can be found to fill jobs that are, periodically, vacated. Since the geographic localization of industry has long been conjectured to facilitate the search process, the model provides an explanation for the observed positive association between average producer size and the magnitude of an industry's presence within local labor markets.

Suggested Citation

  • Christopher H. Wheeler, 2004. "Worker turnover, industry localization, and producer size," Working Papers 2004-021, Federal Reserve Bank of St. Louis.
  • Handle: RePEc:fip:fedlwp:2004-021
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    Cited by:

    1. Li, Dongya & Lu, Yi & Wu, Mingqin, 2012. "Industrial agglomeration and firm size: Evidence from China," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 135-143.

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    Regional economics; Labor market;

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