the impact on employment before and after the 2008 global financial crisis
This study investigates the extent to which indicators of external scale economies impacted employment growth in Canada over the period 2004-2011. We focus on knowledge spillovers between firms while accounting for Marshallian specialization, Jacobs’ diversity, and competition by industry, as well as related and unrelated firm varieties in terms of employment and sales. We find that the employment growth effects of local competition and diversity are positive, while the effect of Marshallian specialization is negative. Diversification is found to be particularly important for employment growth during the Global Financial Crisis and immediately thereafter.
Regional Studies, 2017, Vol 51, Issue 12, p. 1801-1814
External scale economies, Employment growth, Entropy of variety, Firms, Canada