Economics Commons^™

The Impact Of Cluster Strength On Wages: An Empirical Analysis, Devan Schaefer

Electronic Theses and Dissertations

In this thesis, I examine the relationship between clusters (i.e., the grouping of competitive, interconnected industries within a geographical area) and wages, building upon the work of Marshall (1890) and Porter (2003) on the importance of clusters for regional economic development. I seek to answer two research questions. First, after accounting for robustness tests, do clusters continue to affect wages positively? Second, is labor force productivity the only channel through which this relationship occurs? In my analysis, I employ ordinary least squares, two-stage least squares, and fixed effects regression analyses using panel data from 2009 to 2014 for every U.S. …