Agglomeration economies: new evidence on IT employment growth in Italy

Andrea Lasagni

No 2009-EP08, Economics Department Working Papers from Department of Economics, Parma University (Italy)

Abstract: This paper uses Local Labour Market Areas (LLMA) data to investigate the dynamics of employment in the Information Technology (IT) sector in Italy 2001-2005. Adopting the framework suggested by Glaeser et al. (1992) and Combes (2000), the aim is to test if agglomeration forces might significantly affect IT local growth. The basic OLS results are broadly consistent with those of earlier studies. In particular, IT employment growth is enhanced by industrial diversity (Jacobs externalities) and by plant size (economies of scale). At the same time, LLMAs with higher IT concentration are associated with lower employment growth rates. As a robustness check, quantile regression analysis is performed. This additional set of results reaveals that the role of agglomeration forces is different across IT growth levels.

Keywords: agglomeration economies; information technology; LLMA; Italy; quantile regression (search for similar items in EconPapers)
JEL-codes: L86 O33 O47 R11 R12 R30 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:par:dipeco:2009-ep08

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