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Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster

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Author Info
Bruce Fallick
Charles A. Fleischman
James B. Rebitzer

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Abstract

Observers of Silicon ValleyÕs computer cluster report that employees move rapidly between competing firms, but evidence supporting this claim is scarce. Job-hopping is important in computer clusters because it facilitates the reallocation of talent and resources toward firms with superior innovations. Using new data on labor mobility, we find higher rates of job-hopping for college-educated men in Silicon ValleyÕs computer industry than in computer clusters located out of the state. Mobility rates in other California computer clusters are similar to Silicon ValleyÕs, suggesting some role for features of California law that make non-compete agreements unenforceable. Consistent with our model of innovation, mobility rates outside of computer industries are no higher in California than elsewhere.

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Paper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_432.

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Date of creation: Dec 2005
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Handle: RePEc:lev:wrkpap:wp_432

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  1. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
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  2. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August. [Downloadable!] (restricted)
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  4. Jarle Møen, 2000. "Is Mobility of Technical Personnel a Source of R&D Spillovers?," NBER Working Papers 7834, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Rotemberg, Julio J. & Saloner, Garth, 2000. "Competition and human capital accumulation: a theory of interregional specialization and trade," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 373-404, July. [Downloadable!] (restricted)
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  6. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June. [Downloadable!]
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  9. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 545-546, August. [Downloadable!] (restricted)
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  1. Evers, Hans-Dieter, 2008. "Knowledge hubs and knowledge clusters: Designing a knowledge architecture for development," MPRA Paper 8778, University Library of Munich, Germany. [Downloadable!]
  2. Edward L. Glaeser & William R. Kerr, 2008. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," NBER Working Papers 14407, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2008. "Labour mobility, related variety and the performance of plants: A Swedish study," Papers in Evolutionary Economic Geography (PEEG) 0809, Utrecht University, Section of Economic Geography, revised May 2008. [Downloadable!]
  4. Natalia Mishagina, 2007. "Empirical Analysis of Career Transitions of Sciences and Engineering Doctorates in the US," Working Papers 1137, Queen's University, Department of Economics. [Downloadable!]
  5. Hoyt Bleakley & Jeffrey Lin, 2007. "Thick-market effects and churning in the labor market: evidence from U.S. cities," Working Papers 07-23, Federal Reserve Bank of Philadelphia. [Downloadable!]
  6. Cécile Aubert & Oliver Falck & Stephan Heblich, 2008. "Subsidizing National Champions: An Evolutionary Perspective," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  7. Ulrich Kaiser & Hans Christian Kongsted & Thomas Rønde, 2008. "Labor Mobility and Patenting Activity," CAM Working Papers 2008-07, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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