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Labour market externalities and regional growth in Sweden: The importance of labour mobility between skill-related industries

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  • Ron Boschma

    ()

  • Rikard Eriksson
  • Urban Lindgren

Abstract

This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, we test for the importance of labour mobility across so-called skill-related industries. We make use of a sophisticated indicator that measures the degree of skill-relatedness between all industries, and we employ actual labour flows between 435 4-digit industries within 72 Swedish functional labour market regions to estimate how labour market externalities are related to regional growth in the period 1998-2002. Both our fixed effect models and GMM-estimates demonstrate that a strong intensity of intra-regional labour flows between skill-related industries impacts positively on regional productivity growth, but less so on regional employment growth. Labour mobility between unrelated industries tends to dampen regional unemployment growth while a high degree of intra-industry labour flows is only found to be associated with rising regional unemployment.

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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1318.

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Length: 33 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Handle: RePEc:egu:wpaper:1318

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Related research

Keywords: agglomeration externalities; related variety; regional growth; labour mobility; related labour market externalities; skill-relatedness;

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References

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