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Universal resilience patterns in labor markets

Author

Listed:
  • Esteban Moro

    (Universidad Carlos III de Madrid
    Massachusetts Institute of Technology
    Institute for Data, Systems, and Society, Massachusetts Institute of Technology
    Sociotechnical Systems Research Center, Massachusetts Institute of Technology)

  • Morgan R. Frank

    (Massachusetts Institute of Technology
    Sociotechnical Systems Research Center, Massachusetts Institute of Technology
    University of Pittsburgh
    Stanford University)

  • Alex Pentland

    (Massachusetts Institute of Technology
    Institute for Data, Systems, and Society, Massachusetts Institute of Technology
    Sociotechnical Systems Research Center, Massachusetts Institute of Technology)

  • Alex Rutherford

    (Center for Humans & Machines, Max Planck Institute for Human Development)

  • Manuel Cebrian

    (Center for Humans & Machines, Max Planck Institute for Human Development)

  • Iyad Rahwan

    (Center for Humans & Machines, Max Planck Institute for Human Development)

Abstract

Cities are the innovation centers of the US economy, but technological disruptions can exclude workers and inhibit a middle class. Therefore, urban policy must promote the jobs and skills that increase worker pay, create employment, and foster economic resilience. In this paper, we model labor market resilience with an ecologically-inspired job network constructed from the similarity of occupations’ skill requirements. This framework reveals that the economic resilience of cities is universally and uniquely determined by the connectivity within a city’s job network. US cities with greater job connectivity experienced lower unemployment during the Great Recession. Further, cities that increase their job connectivity see increasing wage bills, and workers of embedded occupations enjoy higher wages than their peers elsewhere. Finally, we show how job connectivity may clarify the augmenting and deleterious impact of automation in US cities. Policies that promote labor connectivity may grow labor markets and promote economic resilience.

Suggested Citation

  • Esteban Moro & Morgan R. Frank & Alex Pentland & Alex Rutherford & Manuel Cebrian & Iyad Rahwan, 2021. "Universal resilience patterns in labor markets," Nature Communications, Nature, vol. 12(1), pages 1-8, December.
    • Handle: RePEc:nat:natcom:v:12:y:2021:i:1:d:10.1038_s41467-021-22086-3
    DOI: 10.1038/s41467-021-22086-3
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    Cited by:

    1. O’Clery, Neave & Kinsella, Stephen, 2022. "Modular structure in labour networks reveals skill basins," Research Policy, Elsevier, vol. 51(5).
    2. Kuhn, Moritz & Luo, Jinfeng & Manovskii, Iourii & Qiu, Xincheng, 2023. "Coordinated firm-level work processes and macroeconomic resilience," Journal of Monetary Economics, Elsevier, vol. 137(C), pages 107-127.
    3. Zoltan Elekes & Anna Baranowska-Rataj & Rikard Eriksson, 2021. "Local access to skill-related high-income jobs facilitates career advancement for low-wage workers," Papers in Evolutionary Economic Geography (PEEG) 2136, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    4. Gergő Tóth & Zoltán Elekes & Adam Whittle & Changjun Lee & Dieter F. Kogler, 2022. "Technology Network Structure Conditions the Economic Resilience of Regions," Economic Geography, Taylor & Francis Journals, vol. 98(4), pages 355-378, August.
    5. Junghyun Lim & Michaël Aklin & Morgan R. Frank, 2023. "Location is a major barrier for transferring US fossil fuel employment to green jobs," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    6. Kathyrn R. Fair & Omar A. Guerrero, 2023. "Endogenous Labour Flow Networks," Papers 2301.07979, arXiv.org, revised Mar 2023.

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