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Inter-industry labor flows

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  • Neffke, Frank M.H.
  • Otto, Anne
  • Weyh, Antje

Abstract

Using German social security data, we study inter-industry labor mobility to assess how industry-specific human capital is and to determine which industries have similar human capital requirements. We find that inter-industry labor flows are highly concentrated in just a handful of industry pairs. Consequently, labor flows connect industries in a sparse network. We interpret this network as an expression of industries similarities in human capital requirements, or skill relatedness. This skill-relatedness network is stable over time, similar for different types of workers and independent of whether workers switch jobs locally or over larger distances. Moreover, in an application to regional diversification and local industry growth, skill relatedness proves to be more predictive than colocation or value chain relations. To facilitate future research, we make detailed inter-industry relatedness matrices online available.

Suggested Citation

  • Neffke, Frank M.H. & Otto, Anne & Weyh, Antje, 2017. "Inter-industry labor flows," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 275-292.
  • Handle: RePEc:eee:jeborg:v:142:y:2017:i:c:p:275-292
    DOI: 10.1016/j.jebo.2017.07.003
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    Cited by:

    1. Jacob Rubæk Holm & Christian Richter Østergaard, 2018. "The high importance of de-industrialization and job polarization for regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1821, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2018.
    2. Zsolt Csafordi & Laszlo Lorincz & Balazs Lengyel & Karoly Miklos Kiss, 2016. "Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness," IEHAS Discussion Papers 1610, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    3. Matte Hartog & Frank Neffke, 2017. "Does Managerial Experience Affect Strategic Change?," SPRU Working Paper Series 2017-06, SPRU - Science and Technology Policy Research, University of Sussex.
    4. Hausmann, Ricardo & Morales, Jose Ramon & Santos, Miguel Angel, 2016. "Economic Complexity in Panama: Assessing Opportunities for Productive Diversification," Working Paper Series rwp16-046, Harvard University, John F. Kennedy School of Government.
    5. Anne Otto & Rikard Eriksson & Martin Henning, 2015. "Industrial and geographical mobility of workers exiting the Swedish and West German shipbuilding industry 1970-2000," ERSA conference papers ersa15p958, European Regional Science Association.
    6. Otto, Anne & Weyh, Antje, 2014. "Industry space and skill-relatedness of economic activities : comparative case studies of three eastern German automotive regions," IAB-Forschungsbericht 201408, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Ricardo Hausmann & Jose Ramon Morales Arilla & Miguel Angel Santos, 2016. "Panama beyond the Canal: Using Technological Proximities to Identify Opportunities for Productive Diversification," CID Working Papers 324, Center for International Development at Harvard University.
    8. Dany Bahar & Rodrigo Wagner & Ernesto Stein & Samuel Rosenow, 2017. "The Birth and Growth of New Export Clusters: Which Mechanisms Drive Diversification?," CID Working Papers 86a, Center for International Development at Harvard University.

    More about this item

    Keywords

    Labor mobility; Relatedness; Skills; Regional growth; Germany; Human capital specificity;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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