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

Author

Listed:
  • Bruce Fallick

    (Federal Reserve System)

  • Charles A. Fleischman

    (Federal Reserve System)

  • James B. Rebitzer

    (Case Western Reserve University, The Levy Economics Institute, & The National Bureau of Economic Research)

Abstract

Observers of Silicon Valley’s 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 Valley’s computer industry than in computer clusters located out of the state. Mobility rates in other California computer clusters are similar to Silicon Valley’s, 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.

Suggested Citation

  • Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," Labor and Demography 0512004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0512004
    Note: Type of Document - pdf; pages: 24
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    agglomerations; clusters; non-compete agreements; human capital; innovation; Silicon Valley; modular production.;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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