LABOR MOBILITY, KNOWLEDGE DIFFUSION AND REGIONAL GROWTH

Per Thulin ()

No 209, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper investigates the relationship between inter-firm labor mobility and regional productivity growth. Previous studies have shown that density is positively correlated with growth. I claim that it is not density in itself, but rather the attributes associated with it that drives economic growth. One such attribute is the increased possibility for labor mobility and knowledge diffusion that follows when firms and individuals locate in close proximity to each other. This hypothesis is tested using a matched employer-employee dataset where regional labor mobility is instrumented with density. The result shows that labor mobility increases regional growth rates.

Keywords: Labor mobility; regional growth; agglomeration economies (search for similar items in EconPapers)
JEL-codes: J62 R11 R23 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2009-12-18
New Economics Papers: this item is included in nep-cse, nep-fdg, nep-geo, nep-knm, nep-lab, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0209

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