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Do Workers Benefit from Industrial Agglomeration?

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  • Guido De Blasio
  • Sabrina Di Addario

Abstract

. This paper provides an empirical investigation of the advantages accruing to workers in industrial clusters. Using a unique data set based on the Cluster Mapping Project of the Italian National Statistical Institute, we examine whether industry agglomeration leads to wage and labor mobility differentials. We estimate complete Mincerian wage equations, investigating whether returns to seniority and education are a possible source of differentiation. We find that working in an industrial cluster reduces the returns to education, does not affect the returns to seniority, and does not provide average wage premia. On the other hand, industrial agglomeration positively affects the likelihood of being employed, of starting a business, and of making a transition from payroll employment to entrepreneurship; it also increases blue‐collar worker mobility across jobs.

Suggested Citation

  • Guido De Blasio & Sabrina Di Addario, 2005. "Do Workers Benefit from Industrial Agglomeration?," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 797-827, November.
    • Handle: RePEc:bla:jregsc:v:45:y:2005:i:4:p:797-827
    DOI: 10.1111/j.0022-4146.2005.00393.x
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    References listed on IDEAS

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    1. Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
    2. Guido De Blasio & Sabrina Di Addario, 2002. "Labor market pooling: evidence from Italian industrial districts," Temi di discussione (Economic working papers) 453, Bank of Italy, Economic Research and International Relations Area.
    3. Mr. Guido De Blasio & Sabrina Di Addario, 2002. "Labor Market Pooling," IMF Working Papers 2002/121, International Monetary Fund.
    4. Giacomo Becattini & Marco Bellandi & Gabi Dei Ottati & Fabio Sforzi, 2003. "From Industrial Districts to Local Development," Books, Edward Elgar Publishing, number 2884.
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