Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains
Dario Diodato,
Frank Neffke and
Neave O'Clery
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Neave O'Clery: Center for International Development at Harvard University
No 76, CID Working Papers from Center for International Development at Harvard University
Abstract:
We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-speci c bene fits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry's coagglomeration patterns is relevant for predicting patterns of city-industry employment growth.
Keywords: Coagglomeration; Marshallian externalities; labor pooling; value chains; manufacturing; services; regional diversi cation (search for similar items in EconPapers)
JEL-codes: J24 O14 R11 (search for similar items in EconPapers)
Date: 2016-08
New Economics Papers: this item is included in nep-geo, nep-tid and nep-ure
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http://growthlab.cid.harvard.edu/files/growthlab/files/cid_rfwp_76.pdf (application/pdf)
Related works:
Working Paper: Agglomeration economies: the heterogeneous contribution of human capital and value chains (2016) 
Working Paper: Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains (2016) 
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Persistent link: https://EconPapers.repec.org/RePEc:cid:wpfacu:76
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