Do Workers Benefit from Industrial Agglomeration?

31 Pages Posted: 9 Nov 2005


This 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 premia. On the other hand, industrial agglomeration positively affects the likelihood of being employed, of starting a business, and of making a transition from payroll employment to entrepreneurship; it also increases blue-collar worker mobility across jobs.

Suggested Citation

de Blasio, Guido and Di Addario, Sabrina Lucia, Do Workers Benefit from Industrial Agglomeration?. Journal of Regional Science, Vol. 45, No. 4, pp. 797-827, November 2005. Available at SSRN:

Guido De Blasio (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma

Sabrina Lucia Di Addario

Bank of Italy ( email )

Via 20 settembre, 97/e
00187 Rome, I - 00184
+39 06 4792 3458 (Phone)
+39 06 4792 5626 (Fax)


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