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Human capital as a location factor: An empirical investigation of relocating firms and their labour force in the Netherlands
Author(s) -
Morkutė Gintarė,
Koster Sierdjan
Publication year - 2018
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/pirs.12257
Subject(s) - relocation , human capital , context (archaeology) , labour economics , capital (architecture) , quality (philosophy) , empirical evidence , business , economics , demographic economics , economic growth , geography , computer science , philosophy , archaeology , epistemology , programming language
This paper examines the role of human capital as a location factor in the context of long‐distance firm relocations. Using rich register data on single‐plant firms in the Netherlands 2006–2011, the paper enquires into whether relocation is motivated by the wish to improve the access to employees and the quality of labour force. Not disrupting existing spatial relationships is a prominent consideration of relocating firms, yet in general, relocation does not result in a better spatial match. Some evidence is found for firm‐specific human capital functioning as a keep factor. Relocating firms retain predominantly highly skilled employees, but general human capital itself functions neither as a keep factor nor as a pull factor.