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Matthew Freedman

2008

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Full-Text Articles in Social and Behavioral Sciences

Job Hopping, Earnings Dynamics, And Industrial Agglomeration In The Software Publishing Industry, Matthew Freedman Oct 2008

Job Hopping, Earnings Dynamics, And Industrial Agglomeration In The Software Publishing Industry, Matthew Freedman

Matthew Freedman

This paper investigates the implications of industrial clustering for labor mobility and earnings dynamics in one large and increasingly important high-technology sector. Taking advantage of longitudinal employee-employer matched data, I exploit establishment-level variation in agglomeration to explore how clustering in the software publishing industry affects labor market outcomes. The results show that clustering makes it easier for workers to job hop within the sector. Higher earnings levels in more agglomerated areas are partly attributable to sorting across locations among workers and firms in the industry on the basis of observable and unobservable characteristics. Controlling for this heterogeneity, workers in clusters …

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Ilr Impact Brief - Industry Clusters Affect Job Mobility And Earnings Growth, Matthew Freedman Jun 2008

Ilr Impact Brief - Industry Clusters Affect Job Mobility And Earnings Growth, Matthew Freedman

Matthew Freedman

Industry clusters are associated with greater job hopping and faster growth in workers’ earning power relative to the experience of workers at less spatially concentrated companies. Workers in these clusters tend to accept lower starting salaries than peers at more isolated firms in anticipation of rapid gains that accompany movement from job to job within the cluster and the accumulation of industry-specific knowledge. Higher earnings observed among workers in clustered firms may also reflect choices made by workers with certain characteristics to seek employment in an area with a high concentration of similar firms and by companies with certain characteristics …

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