Federal Reserve Bank of Chicago
Working Paper Series
Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations
To date, most empirical studies of industrial agglomeration rely on data where observations are assigned an industry code based on classification systems such as NAICS in North America and NACE in Europe. This study combines industry data with occupation data to show that there are important differences in the spatial patterns of occupation groups within the widely used industry definitions. We focus on workers in manufacturing industries, whose occupations almost always fit into three groups: production, administrative, or R&D. We then employ two approaches to document the spatial distributions of each group within an industry. First, we calculate the distribution of employment shares across local labor markets and second, we calculate a version of the Duranton and Overman (2005) agglomeration index. Both approaches reveal appreciable differences in the spatial distribution of occupation groups within most manufacturing industries. These differences have important implications for our understanding of the sources of industrial agglomeration, the spatial agglomeration of innovation, the effectiveness of local economic development initiatives, and the spatial properties of particular industries.
Cite this item
Benjamin Goldman & Thomas H. Klier & Thomas Walstrum, Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations, Federal Reserve Bank of Chicago, Working Paper Series WP-2016-20, 14 Nov 2016.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
- O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
Keywords: Agglomeration; automobiles; manufacturing industries; labor markets; occupations
This item with handle RePEc:fip:fedhwp:wp-2016-20
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