Labour pooling, labour poaching, and spatial clustering

Combes, Pierre-Philippe; Duranton, Gilles

doi:10.1016/j.regsciurbeco.2005.06.003

Cited by 235 publications

(179 citation statements)

References 20 publications

(7 reference statements)

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“…For example, there is evidence of job-hopping in the Silicon Valley (Fallick et al, 2006) and in software publishing (Freedman, 2008). This research shows that mobility increases with industrial While labor market pooling may reduce firm costs, leading to greater profit, competition for workers and worker turnover can have the opposite effect (Matouschek and Robert-Nicoud, 2005;Combes and Duranton, 2006;Gerlach et al, 2009). Labor market pooling exposes firms to poaching of vital workers by rival firms and increases labor costs to retain employees.…”

Section: Matchingmentioning

confidence: 82%

Agglomeration and Innovation

Carlino

Kerr

2015

Handbook of Regional and Urban Economics

205

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This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then describe how these factors are frequently measured in the data and some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).JEL: J2, J6, L1, L2, L6, O3, R1, R3

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Section: Matchingmentioning

confidence: 82%

Agglomeration and Innovation

Carlino

Kerr

2015

Handbook of Regional and Urban Economics

205

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“…Overman and Puga (2010) extend this approach to derive the specific prediction that industries facing stronger idiosyncratic shocks will exhibit a greater tendency to agglomerate and that agglomeration will be associated with worker turnover. Matouschek and Robert-Nicoud (2005), Combes and Duranton (2006), and Almazan, de Motta, and Titman (2007) all consider the tension between the beneficial turnover considered by Marshall and the risks that firms and workers face that others -either their opposites or their rivals -will expropriate value created by specific investments. In particular, a firm may be reluctant to train its workers if this training would provoke either opportunism by its employees or poaching by its rivals.…”

Section: Literaturementioning

confidence: 99%

Marshallian labour market pooling: Evidence from Italy

Andini

Blasio

Duranton

et al. 2013

Regional Science and Urban Economics

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This paper employs a unique Italian data source to take a comprehensive approach to labour market pooling. It jointly considers many different aspects of the agglomeration -labour market relationship, including turnover, learning, matching, and hold up. It also considers labour market pooling from the perspective of both workers and firms and across a range of industries. Overall, the paper finds some support for theories of labour market pooling, but the support is weak. Specifically, there is a general positive relationship of turnover to local population density, which is consistent with theories of agglomeration and uncertainty. There is also evidence of on-the-job learning that is consistent with theories of labour pooling, labour poaching, and hold up. In addition, the paper provides evidence consistent with agglomeration improving job matches. However, the labour market pooling gains that we measure are small in magnitude and seem unlikely to account for a substantial share of the agglomeration benefits accruing to Italian workers and firms. Abstract: This paper employs a unique Italian data source to take a comprehensive approach to labor market pooling. It jointly considers many different aspects of the agglomeration -labor market relationship, including turnover, learning, matching, and hold up. It also considers labor market pooling from the perspective of both workers and firms and across a range of industries. Overall, the paper finds some support for theories of labor market pooling, but the support is weak. Specifically, there is a general positive relationship of turnover to local population density, which is consistent with theories of agglomeration and uncertainty. There is also evidence of on-the-job learning that is consistent with theories of labor pooling, labor poaching, and hold up. In addition, the paper provides evidence consistent with agglomeration improving job matches. However, the labor market pooling gains that we measure are small in magnitude and seem unlikely to account for a substantial share of the agglomeration benefits accruing to Italian worker and firms.Key words: local labor markets, matching, turnover, learning, hold-up, agglomeration jel classification: r23, j60 * We are deeply indebted to the researchers in the Statistics Department of the Bank of Italy who helped us to phrase the questions included in the shiw and sisf special sections on local labor markets. Our sincere thanks as well go to

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“…For this reason, employees are sometimes specifically forbidden to gain employment within the same sector after leaving a firm (Bishara and Westermann-Behaylo 2012). But such 'poaching' can be beneficial to firms on the whole: Combes and Duranton (2006) show in a modelling approach that firms can benefit from agglomeration yet at the same time suffer even more from the poaching of workers by competitors and the higher wages they have to pay their valuable employees in order to convince them to stay. However, even without poaching a firm will often end up with employees from its competitors.…”

Section: The Literaturementioning

confidence: 99%

Innovation through new blood

Smit

2017

Ann Reg Sci

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We model the influence of employee mobility on the transmission of knowledge between firms, assuming human capital to be an important influence on service innovation and firm productivity. To this end, we follow individual workers as they move from firm to firm, controlling for knowledge characteristics ('absorptive capacity') of the firm and for regional effects (agglomeration and urbanization). We measure the amount and variety of such flows, and we find statistically significant results; yet the impact of new employees on innovation and productivity seems to come more from the diversity of source firms than from the number of new employees, and effects differ markedly between small and larger firms. JEL Classification

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Labour pooling, labour poaching, and spatial clustering

Cited by 235 publications

References 20 publications

Agglomeration and Innovation

Agglomeration and Innovation

Marshallian labour market pooling: Evidence from Italy

Innovation through new blood

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