Agglomeration economies: the heterogeneous contribution of human capital and value chains

Dario Diodato, Frank Neffke and Neave O’Clery

No 1626, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-specific benefits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry’s coagglomeration patterns is relevant for predicting patterns of city-industry employment growth.

Date: 2016-08, Revised 2016-08
New Economics Papers: this item is included in nep-geo, nep-tid and nep-ure
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http://econ.geo.uu.nl/peeg/peeg1626.pdf Version August 2016 (application/pdf)

Related works:
Working Paper: Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains (2016)
Working Paper: Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1626

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