In this paper I present a model that was built in order to analyse the interdependencies between labour market dynamics and the evolution of industries’ structure, in situations where interpersonal links among workers influence individuals’ job decisions. The model was inspired by the case of industries that rely heavily on highly skilled labour and in which problems of incomplete information abound. The causal mechanisms here proposed constitute an alternative explanation for a number of well-known regularities of industry evolution and of labour mobility, being arguably more suitable to the analysis of those industries than the formal models available in the literature.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2313.
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Find related papers by JEL classification: L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
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