Productivity and the Density of Economic Activity

Ciccone, Antonio; Hall, Robert E.

doi:10.3386/w4313

Cited by 1,382 publications

(1,723 citation statements)

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“…Although imperfect, wages are widely considered to be the best available indicator of worker productivity (Feldstein, 2008), being less subject to measurement error than output estimates from the Census of Manufactures (Ciccone and Hall, 1996). In an urban context, rising productivity is likely to be expressed in higher wages (Combes et al, 2005), and establishment level productivity and wages exhibit similar elasticities with respect to city size (Combes et al, 2010).…”

Section: Empirical Approachmentioning

confidence: 99%

Spillovers from immigrant diversity in cities

Kemeny

Cooke

2017

Journal of Economic Geography

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Theory and evidence suggest that people born in different countries complement each other in the labor market. Immigrant diversity could augment productivity by enabling the combination of different skills, ideas and perspectives, resulting in greater productivity. Using matched employer-employee data for the USA, this paper evaluates this claim, and makes empirical and conceptual contributions to prior work. It addresses the potential bias from unobserved heterogeneity among individuals, work establishments and cities. The paper also identifies diversity impacts at both city and workplace scales, and considers how relationships vary across different segments of the labor market. Findings suggest that urban immigrant diversity produces positive and nontrivial spillovers for U.S. workers. This social return represents a distinct channel through which immigration may generate broad-based economic benefits.

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Section: Empirical Approachmentioning

confidence: 99%

Spillovers from immigrant diversity in cities

Kemeny

Cooke

2017

Journal of Economic Geography

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“…In particular, they note how di¢ cult it is to …nd valid time-varying instruments (most attempts in the existing literature have resulted in weak instrumentation). An example for time-invariant instruments is given in Ciccone and Hall (1996), who study the e¤ect of density by using historical population as an instrument. Combes et al (2008), Duranton and Puga (2004), and Glaeser and Gottlieb (2009) provide a more general discussion of spatial concentration and productivity.…”

Section: Population and Population Densitymentioning

confidence: 99%

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

2013

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We study the effect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our difference-in-difference estimation exploits the variation in the establishment of SEZ across time and space. We find that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20 %. This finding is confirmed with alternative specifications and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive effect on physical capital accumulation, although SEZ also have a positive effect on total factor productivity and human capital investments. We also investigate whether there are spillover effects of SEZ on neighboring regions or cities further away. We find positive and often significant spillover effects. AbstractWe study the e¤ect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our di¤erence-in-di¤erence estimation exploits the variation in the establishment of SEZ across time and space. We …nd that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20%. This …nding is con…rmed with alternative speci…cations and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive e¤ect on physical capital accumulation, although SEZ also have a positive e¤ect on total factor productivity and human capital investments. We also investigate whether there are spillover e¤ects of SEZ on neighboring regions or cities further away. We …nd positive and often signi…cant spillover e¤ects.JEL Codes. H72, L52, O25, O38, O53, P21, R11.

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“…for France (e.g., Combes et al, 2010) and the us (e.g., Ciccone andHall, 1996, Glaeser andResseger, 2010), the estimated elasticity of wages with respect to density is slightly lower. It is about one to two percentage points lower than in these other countries.…”

Section: Our Main Estimating Equation Ismentioning

confidence: 99%

Marshallian labour market pooling: Evidence from Italy

Andini

Blasio

Duranton

et al. 2013

Regional Science and Urban Economics

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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. Abstract: This paper employs a unique Italian data source to take a comprehensive approach to labor market pooling. It jointly considers many different aspects of the agglomeration -labor market relationship, including turnover, learning, matching, and hold up. It also considers labor 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 labor 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 labor pooling, labor poaching, and hold up. In addition, the paper provides evidence consistent with agglomeration improving job matches. However, the labor 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 worker and firms.Key words: local labor markets, matching, turnover, learning, hold-up, agglomeration jel classification: r23, j60 * We are deeply indebted to the researchers in the Statistics Department of the Bank of Italy who helped us to phrase the questions included in the shiw and sisf special sections on local labor markets. Our sincere thanks as well go to

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Productivity and the Density of Economic Activity

Cited by 1,382 publications

References 10 publications

Spillovers from immigrant diversity in cities

Spillovers from immigrant diversity in cities

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

Marshallian labour market pooling: Evidence from Italy

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