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Marshallian labour market pooling: evidence from Italy

Andini, Monica, de Blasio, Guido, Duranton, Gilles and Strange, William C. (2013) Marshallian labour market pooling: evidence from Italy. Regional Science and Urban Economics, 43 (6). pp. 1008-1022. ISSN 0166-0462

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Identification Number: 10.1016/j.regsciurbeco.2013.04.003

Abstract

This paper employs a unique Italian data source to take a comprehensive approach to labour market pooling. It jointly considers many different aspects of the agglomeration - labour market relationship, including turnover, learning, matching, and hold up. It also considers labour market pooling from the perspective of both workers and firms and across a range of industries. Overall, the paper finds some support for theories of labour market pooling, but the support is weak. Specifically, there is a general positive relationship of turnover to local population density, which is consistent with theories of agglomeration and uncertainty. There is also evidence of on-the-job learning that is consistent with theories of labour pooling, labour poaching, and hold up. In addition, the paper provides evidence consistent with agglomeration improving job matches. However, the labour market pooling gains that we measure are small in magnitude and seem unlikely to account for a substantial share of the agglomeration benefits accruing to Italian workers and firms.

Item Type: Article
Official URL: http://www.journals.elsevier.com/regional-science-...
Additional Information: © 2013 Elsevier B.V.
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 16 Dec 2013 14:16
Last Modified: 20 Sep 2019 01:45
URI: http://eprints.lse.ac.uk/id/eprint/54940

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