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Labor Mobility, Knowledge Diffusion And Regional Growth

Author

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  • Thulin, Per

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper investigates the relationship between inter-firm labor mobility and regional productivity growth. Previous studies have shown that density is positively correlated with growth. I claim that it is not density in itself, but rather the attributes associated with it that drives economic growth. One such attribute is the increased possibility for labor mobility and knowledge diffusion that follows when firms and individuals locate in close proximity to each other. This hypothesis is tested using a matched employer-employee dataset where regional labor mobility is instrumented with density. The result shows that labor mobility increases regional growth rates.

Suggested Citation

  • Thulin, Per, 2009. "Labor Mobility, Knowledge Diffusion And Regional Growth," Working Paper Series in Economics and Institutions of Innovation 209, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0209
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    File URL: https://static.sys.kth.se/itm/wp/cesis/cesiswp209.pdf
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    6. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
    7. Holger Görg & Eric Strobl, 2005. "Spillovers from Foreign Firms through Worker Mobility: An Empirical Investigation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 693-709, December.
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    Cited by:

    1. Neil Foster-McGregor & Johannes Pöschl, 2016. "Productivity effects of knowledge transfers through labour mobility," Journal of Productivity Analysis, Springer, vol. 46(2), pages 169-184, December.
    2. Kristina Nyström, 2012. "Labor mobility and entrepreneurship: who do new firms employ?," Chapters,in: Entrepreneurship, Social Capital and Governance, chapter 5, pages 102-114 Edward Elgar Publishing.

    More about this item

    Keywords

    Labor mobility; regional growth; agglomeration economies;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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