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Shared knowledge and the coagglomeration of occupations
This paper provides an empirical analysis of the extent to which people in different occupations locate near one another, or coagglomerate. We construct pairwise Ellison-Glaeser coagglomeration indices for U.S. occupations and use these measures to investigate the factors influencing the geographic concentration of occupations. The analysis is conducted separately at the metropolitan area and state levels of geography. Empirical results reveal that occupations with similar knowledge requirements tend to coagglomerate and that the importance of this shared knowledge is larger in metropolitan areas than in states. These findings are robust to instrumental variables estimation that relies on an instrument set characterizing the means by which people typically acquire knowledge. An extension to the main analysis finds that, when we focus on metropolitan areas, the largest effects on coagglomeration are due to shared knowledge about the subjects of engineering and technology, arts and humanities, manufacturing and production, and mathematics and science.
Cite this item
Todd M. Gabe & Jaison R. Abel, Shared knowledge and the coagglomeration of occupations, Federal Reserve Bank of New York, Staff Reports 612, 01 Apr 2013.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- 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)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
Keywords: coagglomeration; geographic concentration; labor market pooling; knowledge spillovers; occupations
This item with handle RePEc:fip:fednsr:612
is also listed on EconPapers
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