LABOR MOBILITY AND SPATIAL DENSITY
2011 (English)Report (Other academic)
This paper focuses on a much cited but seldom measured micro-foundation for agglomerations: inter-firm labor mobility. Labor mobility has been advanced as a vehicle for knowledge flows and labor market efficiency, and is often maintained to be an important source of agglomeration economies. Based on matched employer-employee data, we estimate the influence that spatial employment density has on the probability of inter-firm job-switching, while controlling for ample attributes of each worker and employer. The rate of inter-firm labor mobility varies substantially across regions and we document a systematic and robust positive influence of density on the probability of job switching. The likelihood that such switching is intra-regional is significantly higher if the employees operate in denser regions, verifying that labor mobility (and thus the effects mediated by it) is indeed localized. Higher rates of inter-firm labor mobility appear as a likely mechanism behind the empirically verified productivity advantage of dense regions.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2011. , 26 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 248
job-switching, inter-firm labor mobility, agglomeration economies, external economies, micro-foundations, density
IdentifiersURN: urn:nbn:se:kth:diva-67477OAI: oai:DiVA.org:kth-67477DiVA: diva2:485019
QC 201202132012-02-132012-01-272013-11-12Bibliographically approved