Labor Market Pooling: Evidence from Italian Industrial Districts
42 Pages Posted: 18 Jan 2011
Date Written: October 1, 2002
Abstract
The paper provides an empirical investigation of the advantages accruing to workers in industrial clusters. Using a unique data set based on the Cluster Mapping Project of the Italian National Statistical Institute, we examine whether industry agglomeration leads to wage and labor mobility differentials. We estimate complete Mincerian wage equations, investigating whether returns to seniority and education are a possible source of differentiation. We find that working in an industrial cluster reduces the returns to education, does not affect the returns to seniority, and does not provide average wage premiums. On the other hand, industrial agglomeration positively affects the likelihood of being employed, of undertaking a business, and of transition from pay roll employment to entrepreneurship, and it increases blue-collar worker mobility across jobs.
Keywords: Agglomeration, Labor Market, Wages, Human Capital, Labor Mobility
JEL Classification: R0
Suggested Citation: Suggested Citation
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