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Does spatial employment density spur inter-firm job switching?
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation. Swedish Entrepreneurship Forum, Stockholm, Sweden.ORCID iD: 0000-0001-8377-1633
2013 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 51, no 1, 245-272 p.Article in journal (Refereed) Published
Abstract [en]

Inter-firm job switching of workers is a much cited but seldom measured source of the productivity advantages of spatial employment density. It has been advanced as a conduit for localized knowledge flows as well as labor market matching efficiency. Using a matched employer-employee dataset for Sweden, we estimate the influence spatial employment density has on the probability of inter-firm job switching of private sector workers. Our estimates suggest that a doubling of employment density per square kilometer increases the probability that a random worker switches employer by 0.2 % points. The same effect is substantially higher for more skilled workers. While the effect of a doubling of density is limited, the actual differences in density across the regions in our data amount to a factor over 40, rendering differences in density an important explanation for regional variations in rates of inter-firm job switching.

Place, publisher, year, edition, pages
Springer, 2013. Vol. 51, no 1, 245-272 p.
Keyword [en]
Agglomeration Economies, Labor Mobility, Knowledge, Productivity, Cities, Regions, Accessibility, Localization, Spillovers, Growth
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-124711DOI: 10.1007/s00168-012-0544-yISI: 000320780800012ScopusID: 2-s2.0-84873871260OAI: diva2:638247

QC 20130729

Available from: 2013-07-29 Created: 2013-07-29 Last updated: 2013-07-29Bibliographically approved

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