Spatial persistence of agglomeration in software publishing

George Deltas; Dakshina G. De Silva; Robert P. McComb

doi:10.1016/j.jebo.2019.07.020

Spatial persistence of agglomeration in software publishing

George Deltas, Dakshina G. De Silva, Robert P. McComb

Research output: Contribution to journal › Article › peer-review

Abstract

We estimate the effects of industrial localization on the spatial persistence of employment in the software industry, using establishment data from Texas for the 2000–2006 period. 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 disembodied knowledge spillovers.

Original language	English (US)
Pages (from-to)	544-565
Number of pages	22
Journal	Journal of Economic Behavior and Organization
Volume	166
DOIs	https://doi.org/10.1016/j.jebo.2019.07.020
State	Published - Oct 2019

Keywords

Agglomeration economies
Firm growth
Knowledge spillovers
Labor pools
Spatial effects

ASJC Scopus subject areas

Economics and Econometrics
Organizational Behavior and Human Resource Management

Online availability

10.1016/j.jebo.2019.07.020

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title = "Spatial persistence of agglomeration in software publishing",

abstract = "We estimate the effects of industrial localization on the spatial persistence of employment in the software industry, using establishment data from Texas for the 2000–2006 period. 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 disembodied knowledge spillovers.",

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year = "2019",

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doi = "10.1016/j.jebo.2019.07.020",

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AU - Deltas, George

AU - De Silva, Dakshina G.

AU - McComb, Robert P.

PY - 2019/10

Y1 - 2019/10

N2 - We estimate the effects of industrial localization on the spatial persistence of employment in the software industry, using establishment data from Texas for the 2000–2006 period. 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 disembodied knowledge spillovers.

AB - We estimate the effects of industrial localization on the spatial persistence of employment in the software industry, using establishment data from Texas for the 2000–2006 period. 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 disembodied knowledge spillovers.

KW - Agglomeration economies

KW - Firm growth

KW - Knowledge spillovers

KW - Labor pools

KW - Spatial effects

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JF - Journal of Economic Behavior and Organization

ER -

Spatial persistence of agglomeration in software publishing

Abstract

Keywords

ASJC Scopus subject areas

Online availability

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