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Labour mobility, skill-relatedness and new plant survival across different development stages of an industry

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  • Riccardo Cappelli
  • Ron Boschma
  • Anet Weterings

Abstract

Labour mobility is often considered a crucial factor for regional development. However, labour mobility is not good per se for local firms. There is increasing evidence that labour recruited from skill-related industries has a positive effect on plant performance, in contrast to intra-industry labour recruits. However, little is known about which types of labour are recruited in different stages of the evolution of an industry, and whether that matters for plant performance. This paper attempts to fill these gaps in the literature using linked employee–employer data at the plant level for manufacturing and services industries in the Netherlands for the period 2001–2009. Our study focuses on the effects of different types of labour recruits on the survival of new plants. We show that the effects of labour recruits from the same industry and from skill-related and unrelated industries on plant survival vary between different stages of the evolution of an industry. We also find that inter-regional labour flows do not affect new plant survival. JEL classification: R11, R12, O18

Suggested Citation

  • Riccardo Cappelli & Ron Boschma & Anet Weterings, 2019. "Labour mobility, skill-relatedness and new plant survival across different development stages of an industry," Environment and Planning A, , vol. 51(4), pages 869-890, June.
    • Handle: RePEc:sae:envira:v:51:y:2019:i:4:p:869-890
    DOI: 10.1177/0308518X18812466
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    Cited by:

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    2. David Morris & Enrico Vanino & Carlo Corradini, 2020. "Effect of regional skill gaps and skill shortages on firm productivity," Environment and Planning A, , vol. 52(5), pages 933-952, August.
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    4. Belmartino, Andrea, 2022. "Green & non-green relatedness: challenges and diversification opportunities for regional economies in Argentina," Nülan. Deposited Documents 3697, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Tijl Hendrich & Jennifer Buurma-Olsen & Judith Bayer, 2022. "Entries and Regional Growth: The Role of Relatedness," CPB Discussion Paper 433, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Kadri Kuusk & Mikhail Martynovich, 2021. "Dynamic Nature of Relatedness, or What Kind of Related Variety for Long‐Term Regional Growth," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 112(1), pages 81-96, February.

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    More about this item

    Keywords

    Labour mobility; skill-relatedness; industry life cycle; industrial dynamics; firm survival;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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