That’s an interesting term, had never really heard of it before.

I wonder why the Wikipedia article doesn’t mention the effect this has in terms of acquiring and keeping talent. Agglomeration gives skilled workers especially good bargaining power. As a skilled worker, I much prefer to live and work somewhere I am not locked into my employer. This is a win-win:

It prevents the employer from locking the employee in; it lets the employee rest easy that she can find other work in the same industry if for some reason her job goes stale; it forces employers to compete with their job offers, resulting in better screening/interview processes and happier employees; and, it gives employers access to bigger pools of talent, resulting in increased productivity levels.

I haven’t formally studied the principle, but I imagine ideas like this must be relevant. (Perhaps I’ll add some comments to this effect to the Wiki discussion.)

Hey Craig — thanks for stopping by! Love your work BTW, it was great when you accepted the conference award on behalf of the craigslist community. Brad Inman is making a big deal about the award, and you just got on the mic and said, “Don’t get that excited.” No one laughed. (I did, nervously.) Classic!