Labour pooling as a source of agglomeration: An empirical investigation

Henry Overman and Diego Puga

No 2008-05, Working Papers from Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales

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.

Keywords: labour market pooling; spatial concentration (search for similar items in EconPapers)
JEL-codes: R12 R30 (search for similar items in EconPapers)
Date: 2008-06-23
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Agglomeration Economics, edited by Edward L. Glaeser, 133-150. Chicago, IL: University of Chicago Press, April 2010

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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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