National Industry Trade Shocks, Local Labor Markets and Agglomeration Spillovers

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 05.12.2017, 12:15 - 13:30


Presentation by 

Ines Helm (Stockholm University)


Using a broad set of national industry trade shocks, I provide a novel approach to estimate agglomeration effects by exploiting within industry variation in indirect exposure to the other local industries’ (national) trade shocks across local labor markets. This variation stems from differences in local industry composition. I find considerable employment spillovers from other tradable industries’ trade shocks and even stronger effects within the same sector. Spillovers are larger for industries employing similar workers and are triggered predominantly by shocks to high technology industries, indicating that place based policies are likely to be more successful when attracting high technology firms.

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