Spatial Persistence of Agglomeration in Software Publishing
36 Pages Posted: 23 Sep 2014 Last revised: 7 Aug 2017
Date Written: April 5, 2017
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: Suggested Citation