Agglomeration and Interregional Mobility of Labor in Portugal

TL;DR

This paper investigates how labor demand in Portugal is influenced by regional and industry clustering, confirming that agglomeration enhances employment demand due to lower transport costs and stronger economic links.

Contribution

It provides empirical evidence linking inter-regional and inter-industry clustering with increased labor demand, supporting New Economic Geography theories.

Findings

Labor demand is higher in regions with greater agglomeration.

Lower transport costs correlate with increased employment demand.

Strong economic links and agglomeration economies boost labor demand.

Abstract

The aim of this paper is to analyze the relationship between inter-industry, intra-industry and inter-regional clustering and demand for labor by companies in Portugal. Is expected at the outset that there is more demand for work where the agglomeration is greater. It should be noted, as a summary conclusion, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where firms are better able to cluster that is where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration.