Agglomeration Effects on Employer-Provided Training: Evidence from the UK
Recent empirical evidence suggests that the density of local economic activity – measured as the number of employees per squared kilometer – positively affects local average productivity. In this paper we use British data from the European Community Household Panel to ask whether local density affects employer–provided training. We find that training is less frequent in economically denser areas. We explain this result as the outcome of the interaction between the positive pooling effects and negative poaching and turnover effects of agglomeration. The size of the negative effect of density is not negligible: when evaluated at the average firm size in the local area, a 10 percent increase in density reduces the probability of employer–provided training by 0.07, more than 20 percent of the average incidence of training in the UK during the sample period.
|Date of creation:||Mar 2004|
|Date of revision:|
|Publication status:||published in: Regional Science and Urban Economics, 2007, 37 (1), 1-22|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
- Brunello, Giorgio & Medio, Alfredo, 2000.
"An Explanation of International Differences in Education and Workplace Training,"
IZA Discussion Papers
114, Institute for the Study of Labor (IZA).
- Brunello, Giorgio & Medio, Alfredo, 2001. "An explanation of international differences in education and workplace training," European Economic Review, Elsevier, vol. 45(2), pages 307-322, February.
- Lisa M Lynch & Sandra E Black, 2002.
"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,"
02-04, Center for Economic Studies, U.S. Census Bureau.
- Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
- S. Black & L. Lynch, 1997. "How to compete: the impact of workplace practices and information technology on productivity," LSE Research Online Documents on Economics 20298, London School of Economics and Political Science, LSE Library.
- S Black & L Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," CEP Discussion Papers dp0376, Centre for Economic Performance, LSE.
- Sandra E. Black & Lisa M. Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," NBER Working Papers 6120, National Bureau of Economic Research, Inc.
- Pierre-Philippe Combes & Gilles Duranton, 2001.
"Labor pooling, labor poaching and spatial clustering,"
LSE Research Online Documents on Economics
20103, London School of Economics and Political Science, LSE Library.
- Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
- Pierre-Philippe Combes & Gilles Duranton, 2001. "Labor Pooling, Labor Poaching and Spatial Clustering," CEP Discussion Papers dp0510, Centre for Economic Performance, LSE.
- Combes, Pierre-Philippe & Duranton, Gilles, 2001. "Labour Pooling, Labour Poaching and Spatial Clustering," CEPR Discussion Papers 2975, C.E.P.R. Discussion Papers.
- Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2003.
"Training in Europe,"
ISER Working Paper Series
2003-23, Institute for Social and Economic Research.
- Antonio Ciccone, 1998.
"Agglomeration-effects in Europe,"
Economics Working Papers
499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
- Bassanini, Andrea & Brunello, Giorgio, 2003. "Is Training More Frequent When Wage Compression is Higher? Evidence from the European Community Household Panel," IZA Discussion Papers 839, Institute for the Study of Labor (IZA).
- Federico Cingano & Fabiano Schivardi, 2004.
"Identifying the Sources of Local Productivity Growth,"
Journal of the European Economic Association,
MIT Press, vol. 2(4), pages 720-742, 06.
- Federico Cingano & Fabiano Schivardi, 2003. "Identifying the Sources of Local Productivity Growth," Temi di discussione (Economic working papers) 474, Bank of Italy, Economic Research and International Relations Area.
- Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995.
"Industrial Development in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 103(5), pages 1067-90, October.
- Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers.
- Yatchew, Adonis & Griliches, Zvi, 1985. "Specification Error in Probit Models," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 134-39, February.
- Andres Almazan & Adolfo de Motta & Sheridan Titman, 2003. "Firm Location and the Creation and Utilization of Human Capital," NBER Working Papers 10106, National Bureau of Economic Research, Inc.
- Zenou, Yves, 2003. "Urban Labour Economic Theory," CEPR Discussion Papers 4029, C.E.P.R. Discussion Papers.
- Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
- repec:iza:izadps:dp is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1055. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.