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Testing for labour pooling as a source of agglomeration economies: Evidence for labour markets in E ngland and Wales
Author(s) -
Melo Patricia C.,
Graham Daniel J.
Publication year - 2014
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2012.00462.x
Subject(s) - pooling , economies of agglomeration , matching (statistics) , productivity , labour economics , economics , quality (philosophy) , microeconomics , economic growth , philosophy , statistics , mathematics , epistemology , artificial intelligence , computer science
Abstract This paper generates new evidence for E ngland and W ales on the importance of labour pooling as a source of agglomeration economies. Estimates of worker and firm productivity are obtained from longitudinal worker and firm micro‐data and used to test the hypothesis that denser labour markets increase the quality of the matching between employees and employers across labour markets. Our findings provide evidence supportive of a positive relationship between the quality of the employee‐employer matching and the economic size of labour markets.