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Mysteries of the Trade? Skill-Specific Local Agglomeration Economies

Author

Listed:
  • Andersson, Martin

    () (Department of Industrial Economics Blekinge Institute of Technology (BTH))

  • Larsson, Johan P

    () (University of Cambridge, Department of Land Economy)

Abstract

Using longitudinal Swedish data, we document robust evidence of highly local spillovers between individuals in similar occupations. The results are consistent with the existence of knowledge spillovers between workers performing similar work tasks in the same city-district. We further demonstrate less distance-sensitive benefits of working in diverse districts and regions, characterized by high density of employees in other occupations. The diversity benefits exist only in metropolitan areas and pertain to workers performing advanced services or non-routine work tasks.

Suggested Citation

  • Andersson, Martin & Larsson, Johan P, 2020. "Mysteries of the Trade? Skill-Specific Local Agglomeration Economies," Working Paper Series 1352, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1352
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    References listed on IDEAS

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    More about this item

    Keywords

    Agglomeration economies; Wages; Spillovers; Attenuation; Clusters; Economic proximity; Relatedness;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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