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Mysteries of the trade? Skill-specific local agglomeration economies

Andersson, Martin LU and Larsson, Johan P. (2022) In Regional Studies 56(9). p.1538-1553
Abstract

Do workers benefit from proximity to other workers with similar skill sets? This question dates back at least to Alfred Marshall. We use occupation groups to proxy skill sets and show that the answer likely depends on geographical levels, as well on regional hierarchy. Using longitudinal Swedish data, we document robust evidence consistent with highly localized spillovers at the level of sub-city districts between individuals in similar occupations. We further demonstrate less distance-sensitive benefits of working in districts and regions, characterized by high overall density (of employees in other occupations). We find no evidence of benefits from overall density outside Sweden’s three main metropolitan areas.

Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
agglomeration economies, attenuation, clusters, economic proximity, relatedness, spillovers, wages
in
Regional Studies
volume
56
issue
9
pages
1538 - 1553
publisher
Taylor & Francis
external identifiers
  • scopus:85112118309
ISSN
0034-3404
DOI
10.1080/00343404.2021.1954611
language
English
LU publication?
yes
id
a64813e4-67d9-4a65-8041-a53df7e6dbda
date added to LUP
2021-09-03 15:28:52
date last changed
2024-05-04 11:42:02
@article{a64813e4-67d9-4a65-8041-a53df7e6dbda,
  abstract     = {{<p>Do workers benefit from proximity to other workers with similar skill sets? This question dates back at least to Alfred Marshall. We use occupation groups to proxy skill sets and show that the answer likely depends on geographical levels, as well on regional hierarchy. Using longitudinal Swedish data, we document robust evidence consistent with highly localized spillovers at the level of sub-city districts between individuals in similar occupations. We further demonstrate less distance-sensitive benefits of working in districts and regions, characterized by high overall density (of employees in other occupations). We find no evidence of benefits from overall density outside Sweden’s three main metropolitan areas.</p>}},
  author       = {{Andersson, Martin and Larsson, Johan P.}},
  issn         = {{0034-3404}},
  keywords     = {{agglomeration economies; attenuation; clusters; economic proximity; relatedness; spillovers; wages}},
  language     = {{eng}},
  number       = {{9}},
  pages        = {{1538--1553}},
  publisher    = {{Taylor & Francis}},
  series       = {{Regional Studies}},
  title        = {{Mysteries of the trade? Skill-specific local agglomeration economies}},
  url          = {{http://dx.doi.org/10.1080/00343404.2021.1954611}},
  doi          = {{10.1080/00343404.2021.1954611}},
  volume       = {{56}},
  year         = {{2022}},
}