Labour pooling as a source of agglomeration: an empirical investigation

Henry Overman and Diego Puga

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We provide empirical evidence on the role of labour market pooling in determining the spatial concentration of UK manufacturing establishments. This role arises because large concentrations of employment iron out idiosyncratic shocks and improve establishments’ ability to adapt their employment to good and bad times. We measure the likely importance of labour pooling by calculating the fluctuations in employment of individual establishments relative to their sector and averaging by sector. Our results show that sectors whose establishments experience more idiosyncratic volatility are more spatially concentrated, even after controlling for a range of other industry characteristics that include a novel measure of the importance of localized intermediate suppliers.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://eprints.lse.ac.uk/33149/ Open access version. (application/pdf)

Related works:
Chapter: Labor Pooling as a Source of Agglomeration: An Empirical Investigation (2010)
Working Paper: Labour Pooling As a Source of Agglomeration: An Empirical Investigation (2009)
Working Paper: Labour Pooling as a Source of Agglomeration: An Empirical Investigation (2008)
Working Paper: Labour pooling as a source of agglomeration: An empirical investigation (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:33149

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