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Skills and Clusters

In: Innovation Clusters and Interregional Competition

Author

Listed:
  • Antonio Ciccone

    (Universitat Pompeu Fabra
    CEPR
    IZA)

  • Federico Cingano

    (Universitat Pompeu Fabra
    Bank of Italy)

Abstract

There is a by now large literature on the effects of agglomeration on productivity and wages. The (empirical) question asked is the following: How much higher is productivity (and hence wages) in locations where production agglomerates. Several measures of agglomeration are used. The most common one is the volume of production quantified by employment. Some of the main contributions relying on this measure of agglomeration are Henderson (1986, 1988), Segal (1976), and Sveikauskas (1975). Another measure of agglomeration is the density of production quantified by employment per unit of space in a location. This is the measure used in Ciccone and Hall (1996) for example. The results in this literature suggest that, roughly, doubling employment in a location increases productivity and wages by 4 to 6 percent. Although this result is based mostly on US data, there is evidence that it also holds across European countries (Ciccone (2002)).

Suggested Citation

  • Antonio Ciccone & Federico Cingano, 2003. "Skills and Clusters," Advances in Spatial Science, in: Johannes Bröcker & Dirk Dohse & Rüdiger Soltwedel (ed.), Innovation Clusters and Interregional Competition, chapter 11, pages 218-237, Springer.
  • Handle: RePEc:spr:adspcp:978-3-540-24760-9_11
    DOI: 10.1007/978-3-540-24760-9_11
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    Cited by:

    1. Brunello, Giorgio & De Paola, Maria, 2008. "Training and economic density: Some evidence form Italian provinces," Labour Economics, Elsevier, vol. 15(1), pages 118-140, February.
    2. Zouaghi, Ferdaous & Hirsch, Stefan & Garcia, Mercedes Sanchez, 2016. "What Drives Firm Profitability? A Multilevel Approach To The Spanish Agri-Food Sector," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244762, German Association of Agricultural Economists (GEWISOLA).

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