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Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries

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  • Ron Boschma
  • Rikard H. Eriksson
  • Urban Lindgren

Abstract

Boschma R., Eriksson R. H. and Lindgren U. Labour market externalities and regional growth in Sweden: the importance of labour mobility between skill-related industries, Regional Studies . This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, it tests for the importance of labour mobility across so-called skill-related industries between 435 four-digit industries within 72 Swedish functional regions (1998-2002). Both the fixed-effect models and generalized method of moments (GMM) estimates demonstrate that a strong intensity of intra-regional labour flows between skill-related industries impacts positively on regional productivity growth, but less so on employment growth. Labour mobility between unrelated industries tends to dampen regional unemployment growth while a high degree of intra-industry labour flows is only found to be associated with rising unemployment.

Suggested Citation

  • Ron Boschma & Rikard H. Eriksson & Urban Lindgren, 2014. "Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1669-1690, October.
  • Handle: RePEc:taf:regstd:v:48:y:2014:i:10:p:1669-1690
    DOI: 10.1080/00343404.2013.867429
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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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