National Industry Trade Shocks, Local Labor Markets, and Agglomeration Spillovers

Ines Helm

No 2019:1, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: Using a broad set of national industry trade shocks, I employ a novel approach to estimate agglomeration effects by exploiting within industry variation in indirect exposure to the other local industries’ (national) trade shocks across local labor markets. This variation stems from differences in local industry composition and allows to test for the existence of heterogeneous agglomeration effects across industries. I find considerable employment spillovers from other tradable industries’ trade shocks and even stronger effects within the same broad sector. Spillovers are larger for industries employing similar workers and are triggered predominantly by shocks to high technology industries.

Keywords: Agglomeration; Local Labor Markets; Trade Shocks (search for similar items in EconPapers)
JEL-codes: F16 J20 R11 R12 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2019-01-10
New Economics Papers: this item is included in nep-geo, nep-lma, nep-net, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Journal Article: National Industry Trade Shocks, Local Labour Markets, and Agglomeration Spillovers (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2019_0001

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