KNOWLEDGE SPILLOVERS,ABSORPTIVE CAPACITY,AND SKILL INTENSITY OF CHILEAN MANUFACTURING PLANTS*

ABSTRACT Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant‐level production function is estimated with the absorptive‐capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill‐intensive production also enhance its productivity.     

FIRM PRODUCTIVITY AND INSTITUTIONAL QUALITY: EVIDENCE FROM ITALIAN INDUSTRY

This paper aims to contribute to the debate on the determinants of differentials in firms’ productivity. We test the hypothesis that macro factors, especially the quality of local institutions, play a central role in explaining firm productivity in Italy. To this end, we construct measures of Total Factor Productivity (TFP) for about 4,000 firms by means of different estimation techniques, and a province‐level index of institutional quality. Then, we estimate the relationship between institutional quality and firm‐level TFP. Our results show that the existence of better local institutions might help firms to become more productive.     

OPENNESS TO TRADE AND INDUSTRY COST DISPERSION: EVIDENCE FROM A PANEL OF ITALIAN FIRMS*

ABSTRACT We use Italian firm‐level data to investigate the impact of trade openness on the distribution of firms across marginal cost levels. In so doing, we implement a procedure that allows us to control not only for the standard transmission bias identified in firm‐level TFP regressions but also for the omitted price bias due to imperfect competition. We find that more open industries are characterized by a smaller dispersion of costs across active firms. Moreover, in those industries the average cost is also smaller.     

TOTAL FACTOR PRODUCTIVITY GROWTH IN MANUFACTURING FURTHER EVIDENCE FROM THE STATES*

In this paper, we first develop a measure of total factor productivity (TFP) growth and summarize a source-of-growth analysis for the manufacturing sector of 48 states. As have others, we find little association between TFP growth differentials and output growth differentials for census regions. At the staterather than the regional level, however, we find a positive association between TFP growth and output growth. We use cross-sectional data to estimate the determinants of the variation in TFP growth. Two results emerge that are important for regional policy and for understanding national productivity trends. First, state investments in education and in transportation infrastructure may affect TFP growth. Second, energy price increases in the early 1970s had no differential effects on productivity growth across states. We also explore the determinants of manufacturing output growth and find that TFP growth, demand growth, wage growth, wage levels, and state corporate income tax rates are significant.     

IMMIGRATION AND HOUSING BOOMS: EVIDENCE FROM SPAIN*

ABSTRACT We provide causal estimates of the effect of immigration on house prices and construction activity in Spain over the period 2000–2010. During this period Spain experienced spectacular swings in both immigration and the housing market. Our instrumental‐variables estimates suggest that between 2000 and 2010, immigration led to an average 1.5 percent annual increase in the working‐age population. This was responsible for an annual increase in housing prices of about 2 percent, and for a 1.2–1.5 percent increase in housing units. Overall, immigration was responsible for one quarter of the increase in prices and about half of the construction activity over the decade.     

URBAN PRODUCTIVITY: CITY SIZE OR INDUSTRY SIZE*

ABSTRACT This paper analyzes the effect of city size and industry size on urban productivity in the food processing industry. Some formulations suggest productivity is associated with industry size rather than city size. However, when allowance is made for the tendency of food processing to locate near relevant raw materials and for regional dummies, there is no support for industry scale economies. Agglomeration effects, associated with city size, do exist. The central estimates are based on the Chan-Mountain version of the translog production function. The results provide information on some facets of the appropriate balance between industrial and agricultural production.     

REGIONAL LABOR PRODUCTIVITY IN THE NETHERLANDS: EVIDENCE OF AGGLOMERATION AND CONGESTION EFFECTS*

ABSTRACT This paper studies the impact of localization, urbanization, and diversification on regional labor productivity levels and growth. We find substantial effects, accounting for roughly half of the explained variation in the labor productivity differences within the Netherlands in the 1990s. Diversification, urbanization, and localization effects are significant and positive for productivity levels. These levels appear cointegrated. The error correction specification of productivity growth surprisingly reflects negative agglomeration effects. From the theoretical model it follows that congestion effects must have taken precedence over agglomeration effects during this period. Both agglomeration and congestion effects are dampened by job density in neighboring regions. Finally, policy simulations with the estimated model show that spatial concentration is more harmful to national productivity growth than spatial dispersion.     

CHANGES IN THE LOCATION OF EMPLOYMENT AND OWNERSHIP: EVIDENCE FROM CALIFORNIA*

ABSTRACT We use the National Establishment Time‐Series database to describe shifts in the geographic dispersion of employment and ownership of firms. Focusing on data on business establishments in California, and establishments anywhere in the United States that are owned by firms headquartered in California, we find shifts in the operations of businesses headquartered in California to other states. However, this shift has been offset by increased employment in the state by firms headquartered elsewhere, resulting in California's share of national employment holding quite constant. The evidence points to increasing geographic dispersion of firms' operations, especially in industries with lower communication costs.     

FLEXIBLE TECHNOLOGY IN THE CLOTHING INDUSTRY: SOME EVIDENCE FROM VANCOUVER

This paper provides some preliminary evidence on the impact of flexible equipment on the clothing industry in Vancouver. It is argued that the implementation of these machines is limited to certain sectors of the industry and to specific sections of the labour process in clothing factories. In spite of the limited impact of these machines in Vancouver, the implications of flexible equipment in this manufacturing sector are far-reaching.
Get article fournit des évidences préliminaires sur l'effet de l'outillage maniable sur la confection à Vancouver. L'on dit que la réalisation de ces machines est restreinte à certains secteurs de l'industrie et aux parties précises du processus du travail dans les usines de confection. Malgré l'effet restreintde ces machines à Vancouver, l'implication de l'outillage maniable dans la confection est d'une portée considérable.     

AGGLOMERATION EXTERNALITIES,PRODUCTIVITY, AND TECHNICAL INEFFICIENCY*

ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision‐making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency.     

ROAD INVESTMENTS,SPATIAL SPILLOVERS,AND DEFORESTATION IN THE BRAZILIAN AMAZON*

ABSTRACT Understanding the impact of road investments on deforestation is part of a complete evaluation of the expansion of infrastructure for development. We find evidence of spatial spillovers from roads in the Brazilian Amazon: deforestation rises in the census tracts that lack roads but are in the same county as and within 100 km of a tract with a new paved or unpaved road. At greater distances from the new roads the evidence is mixed, including negative coefficients of inconsistent significance between 100 and 300 km, and if anything, higher neighbor deforestation at distances over 300 km.     

OLDOWAN RAW MATERIAL PROCUREMENT AND USE: EVIDENCE FROM THE KOOBI FORA FORMATION*

Raw material availability has been shown to be a major factor affecting the material culture of Oldowan tool users. Studies of artefact provenance often focus on site‐specific raw material availability. Here, we use data from primary and secondary sources of raw material to develop a model of basin‐scale stone availability in the eastern Turkana Basin, during the KBS and Okote Members of the Koobi Fora Formation. ED‐XRF was used as a method of characterizing raw material sources and artefacts using trace elements. This model is applied to the site of FxJj 50 to investigate transport and discard patterns.     

WAGE AND MOBILITY EFFECTS OF LEGALIZATION: EVIDENCE FROM THE NEW IMMIGRANT SURVEY*

ABSTRACT Using New Immigrant Survey data, we identify immigrants who were unauthorized to work prior to obtaining Legal Permanent Resident status, and examine whether lacking legal status to work in the United States constrains employment outcomes of illegal immigrants. The data reveal no evidence of improved employment outcomes attributable to legal status, except among the high‐skilled. In light of evidence that unauthorized immigrants experienced increased wages as a result of receiving amnesty through the 1986 Immigration and Reform Control Act, we interpret the results as consistent with a reduced threat of employer sanctions combined with widespread availability of false work authorization documents.     

REGIONAL HETEROGENEITY IN WAGE DISTRIBUTIONS: EVIDENCE FROM SPAIN*

ABSTRACT Regional differences in real wages have been shown to be both large and persistent in the United States and the U.K., as well as in the economies of other countries. Empirical evidence suggests that wage differentials adjusted for the cost of living cannot only be explained by the unequal spatial distribution of characteristics determining earnings. Rather, average wage gap decomposition reveals the important contribution made by regional heterogeneity in the price assigned to these characteristics. This paper proposes a method for assessing regional disparities in the entire wage distribution and for decomposing the effect of differences across regions in the endowments and prices of the characteristics. The hypothesis forwarded is that the results from previous studies obtained by comparing average regional wages may be partial and nonrobust. Empirical evidence from a matched employer–employee dataset for Spain confirms marked differences in wage distributions between regions, which do not result from worker and firm characteristics but from the increasing role of regional differences in the return to human capital.     

THE MINORITY HOMEOWNERSHIP GAP,HOME FORECLOSURE,AND NATIVITY: EVIDENCE FROM MIAMI‐DADE COUNTY*

ABSTRACT This paper investigates the interplay between nativity and both homeownership and foreclosure in Miami‐Dade County, Florida at both the individual and community levels. We estimate the likelihood of individual‐level home ownership based on place of birth and year of entry to the U.S., and separately estimate community‐level foreclosures based on the demographic composition of neighborhoods. Results confirm previous work: all subgroups, except Cubans, are less likely to be homeowners than white, non‐Hispanics and only Cuban neighborhoods had foreclosure rates significantly lower than rates in white, non‐Hispanic neighborhoods. Nativity has a stronger effect on homeownership than on foreclosure levels.     

SPATIAL EFFECTS OF TRADE POLICY: EVIDENCE FROM BRAZIL*

ABSTRACT Does trade policy shape a country's internal economic geography? Empirical evidence on the spatial effects of trade policy in developing countries is limited. This paper contributes to this literature by looking at the experience of Brazil over the 1990s. In particular, an econometric analysis of the determinants of industrial location using data on regional manufacturing employment as well as data on several region and industry characteristics over the period 1990–1998 is performed. Estimation results suggest that trade openness favored location in states closer to the largest neighbor trading partner and that this effect increased through the end of the 1990s.     

AGGLOMERATION AND TRADE: STATE‐LEVEL EVIDENCE FROM U.S. INDUSTRIES*

ABSTRACT This paper investigates the connection between economic agglomeration and trade patterns within the United States at the industry level. On the consumption side, industry‐ and state‐specific international imports and elasticities of substitution are shown to be systematically connected to consumption agglomeration effects, while on the production side, industry‐ and state‐specific international exports and intermediate input trade are shown to be systematically connected to production agglomeration and specialization effects. Industry structures play an important role in the determination and magnitude of these effects.     

SPATIAL MOBILITY AND RETURNS TO EDUCATION: SOME EVIDENCE FROM A SAMPLE OF FRENCH YOUTH*

ABSTRACT This study re‐evaluates the returns to geographic mobility and to the level of education taking into account the interaction between these two variables, and using the distance covered as a proxy for migration costs. We have at our disposal an original French database that permits precise calculation of the distance between the place of education and the location of first employment. For men, we find decreasing returns to spatial mobility as the distance covered rises and increasing returns to mobility with higher levels of education. The marginal returns to spatial mobility for women are lower across the board.