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Labour Force Paths as Industry Linkages: A Perspective on Clusters and Industry Life Cycles

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Author Info
Mika Maliranta
Tuomo Nikulainen

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Abstract

ABSTRACT : We make several findings related to the dynamics of labour markets and industry life cycles in our analysis, which makes use of longitudinal employer-employee data that cover the whole working age population in Finland. Firstly, we find that across industry transitions of the employed are common. Secondly, employment transitions portray a network of industry linkages where specific industry clusters can be identified, as well as labour flow paths with long backward and forward linkages. Thirdly, most of the upstream labour mobility linkages are end up in the education industry, which thus seems to be an “ancestor” of the most of the industries. On the other hand, we find eight totally isolated industries that had no distinct backward or forward linkages in the labour markets. Finally, we show that the labour flows are a significant indicator for industry life cycles.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1168.

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Length: 18 pages
Date of creation: 08 Dec 2008
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Handle: RePEc:rif:dpaper:1168

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Related research
Keywords: employment transitions; industry clusters; industry life cycle;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Matthias Deschryvere, 2008. "High Growth Firms and Job Creation in Finland," Discussion Papers 1144, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-27, October.
    Other versions:
  3. Frederiksen, Anders & Westergaard-Nielsen, Niels, 2002. "Where did they go ?," CLS Working Papers 01-11, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
    Other versions:
  4. Mika Maliranta & Satu Nurmi, 2004. "Analyzing Entrepreneurship with the Finnish Linked Employer-Employee Data (FLEED).Matching and qualitative properties of the data," Discussion Papers 920, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Neal, Derek, 1999. "The Complexity of Job Mobility among Young Men," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 237-61, April. [Downloadable!] (restricted)
    Other versions:
  6. Edward J. Feser, Edward M. Bergman, 2000. "National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis," Regional Studies, Taylor and Francis Journals, vol. 34(1), pages 1-19, February. [Downloadable!] (restricted)
  7. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc. [Downloadable!]
  8. Bauer, Thomas K. & Bender, Stefan, 2004. "Technological change, organizational change, and job turnover," Labour Economics, Elsevier, vol. 11(3), pages 265-291, June. [Downloadable!] (restricted)
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  9. Carol Corrado & Charles Hulten & Daniel Sichel, 2005. "Measuring Capital and Technology: An Expanded Framework," NBER Chapters, in: Measuring Capital in the New Economy, pages 11-46 National Bureau of Economic Research, Inc. [Downloadable!]
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  10. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June. [Downloadable!] (restricted)
  11. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier. [Downloadable!] (restricted)
  12. Francesco Daveri & Olmo Silva, 2004. "Not only Nokia: what Finland tells us about "new economy" growth," Economic Policy, CEPR, CES, MSH, vol. 19(38), pages 117-163, 04. [Downloadable!] (restricted)
  13. AMOS GOLAN & JULIA LANE & ERIKA McENTARFER, 2007. "The Dynamics of Worker Reallocation within and across Industries," Economica, London School of Economics and Political Science, vol. 74(293), pages 1-20, 02. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Frank Neffke & Martin Svensson Henning, 2009. "Skill-relatedness and firm diversification," Papers on Economics and Evolution 2009-06, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
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