Spatial Persistence of Agglomeration in Software Publishing

36 Pages Posted: 23 Sep 2014 Last revised: 7 Aug 2017

See all articles by George Deltas

George Deltas

University of Illinois at Urbana-Champaign - Department of Economics

Dakshina G. De Silva

Department of Economics, Lancaster University Management School

Robert P. McComb

Texas Tech University - Department of Economics

Date Written: April 5, 2017

Abstract

We estimate the effects of industrial localization on the spatial persistence of employment in the software industry. Locations with an initial concentration of software employment retain an excess number of employees, beyond that expected from job turnover and job persistence at the establishment level. This is not driven by differential establishment growth or survival, but it is due to (a) the retention by establishments in a location of jobs lost by other establishments in that location, and (b) the propensity of software establishments to enter in locations with prior software establishment presence. These findings are more consistent with labor channel effects than with human capital spillovers.

Keywords: Agglomeration, Software Industry, Labor Pools, Knowledge Spillovers, Firm Growth, Spatial

JEL Classification: R12

Suggested Citation

Deltas, George and De Silva, Dakshina G. and McComb, Robert P., Spatial Persistence of Agglomeration in Software Publishing (April 5, 2017). Available at SSRN: https://ssrn.com/abstract=2499497 or http://dx.doi.org/10.2139/ssrn.2499497

George Deltas (Contact Author)

University of Illinois at Urbana-Champaign - Department of Economics ( email )

1206 South Sixth Street
450 Commerce West
Champaign, IL 61820
United States
217-333-4586 (Phone)
217-244-6678 (Fax)

Dakshina G. De Silva

Department of Economics, Lancaster University Management School ( email )

Lancaster LA1 4YX
United Kingdom

Robert P. McComb

Texas Tech University - Department of Economics ( email )

MS 41014
Lubbock, TX 79409-1014
United States
806 742-2466 x240 (Phone)

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