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How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990-2010)

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  • Rikard H. Eriksson
  • Emelie Hane-Weijman

Abstract

By means of Swedish longitudinal micro-data, the aim of this paper is to analyse how regional economies respond to crises. This is made possible by linking gross employment flows to the notion of regional resilience. Our findings indicate that despite a steady national employment growth, only the three metropolitan regions show higher employment figures than before the recession of 1990. Further, we can show evidence of high levels of job creation and destruction in both declining and expanding regions and sectors, and that the creation of jobs is mainly attributable to employment growth in incumbent firms while job destruction is primarily due to exits and micro-plants. Although the geography of resistance to crises and the ability of adaptability in the aftermath vary, our findings suggest that cohesive (i.e., with many skill-related industries) and diverse (i.e., with a high degree of unrelated variety) regions are more resilient over time. We also find that resistance to future shocks (e.g., the 2008 recession) is highly dependent on the resistance to previous crises. In all, this suggests that the long-term evolution of regional economies also influences their future resilience.

Suggested Citation

  • Rikard H. Eriksson & Emelie Hane-Weijman, 2015. "How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990-2010)," Papers in Evolutionary Economic Geography (PEEG) 1511, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    • Handle: RePEc:egu:wpaper:1511
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    Cited by:

    1. Michael Stierle & Ulrike Stierle-von Schütz & Stijn Rocher, 2018. "How did Regional Economic Structures in the EU Change during the Economic Crisis?," European Economy - Discussion Papers 088, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Fabio Mazzola & Iolanda Cascio & Rosalia Epifanio & Giuseppe Giacomo, 2018. "Territorial capital and growth over the Great Recession: a local analysis for Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 411-441, March.
    3. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    4. John Östh & Aura Reggiani & Peter Nijkamp, 2018. "Resilience and accessibility of Swedish and Dutch municipalities," Transportation, Springer, vol. 45(4), pages 1051-1073, July.

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    Keywords

    regional economic evolution; job creation; job destruction; crises; regional resilience;
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