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National Industry Trade Shocks, Local Labor Markets, and Agglomeration Spillovers

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  • Helm, Ines

    (Dept. of Economics, Stockholm University)

Abstract

Using a broad set of national industry trade shocks, I employ a novel approach to estimate agglomeration effects by exploiting within industry variation in indirect exposure to the other local industries’ (national) trade shocks across local labor markets. This variation stems from differences in local industry composition and allows to test for the existence of heterogeneous agglomeration effects across industries. I find considerable employment spillovers from other tradable industries’ trade shocks and even stronger effects within the same broad sector. Spillovers are larger for industries employing similar workers and are triggered predominantly by shocks to high technology industries.

Suggested Citation

  • Helm, Ines, 2019. "National Industry Trade Shocks, Local Labor Markets, and Agglomeration Spillovers," Research Papers in Economics 2019:1, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:2019_0001
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    Cited by:

    1. Kilian Huber, 2020. "Are Bigger Banks Better? Firm-Level Evidence from Germany," Working Papers 2020-172, Becker Friedman Institute for Research In Economics.
    2. Martina Magli, 2020. "The Direct and Indirect Effect of Services Offshoring on Local Labour Market Outcomes," CESifo Working Paper Series 8413, CESifo.
    3. J. Meekes & W.H.J. Hassink, 2018. "Endogenous local labour markets, regional aggregation and agglomeration economies," Working Papers 18-03, Utrecht School of Economics.
    4. Girum Abebe & Margaret McMillan & Michel Serafinelli, "undated". "Foreign Direct Investment and Knowledge Diffusion in Poor Locations," Working Paper series 20-14, Rimini Centre for Economic Analysis.
    5. Klaus S. Friesenbichler & Agnes Kügler & Andreas Reinstaller, 2021. "The Impact of Import Competition from China on Firm-level Productivity Growth in the EU," WIFO Working Papers 623, WIFO.
    6. Rafael Dix-Carneiro & Brian K. Kovak, 2017. "Trade Liberalization and Regional Dynamics," American Economic Review, American Economic Association, vol. 107(10), pages 2908-2946, October.
    7. Simon Fuchs, 2021. "Spoils of War: Trade Shocks and Segmented Labor Markets in Spain during WWI," FRB Atlanta Working Paper 2021-14, Federal Reserve Bank of Atlanta.
    8. Kilian Huber, 2021. "Estimating General Equilibrium Spillovers of Large-Scale Shocks," CESifo Working Paper Series 8955, CESifo.
    9. Müller, Isabella, 2020. "Trade shocks, credit reallocation and the role of specialisation: Evidence from syndicated lending," IWH Discussion Papers 15/2020, Halle Institute for Economic Research (IWH).
    10. Laws, A., 2020. "Localised employment spillovers," Cambridge Working Papers in Economics 2067, Faculty of Economics, University of Cambridge.

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    More about this item

    Keywords

    Agglomeration; Local Labor Markets; Trade Shocks;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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