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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

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  • Rikard Eriksson
  • Urban Lindgren

Abstract

This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, we test for the importance of labour mobility across so-called skill-related industries. We make use of a sophisticated indicator that measures the degree of skill-relatedness between all industries, and we employ actual labour flows between 435 4-digit industries within 72 Swedish functional labour market regions to estimate how labour market externalities are related to regional growth in the period 1998-2002. Both our fixed effect models and 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 regional 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 regional unemployment.

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  • Ron Boschma & Rikard Eriksson & Urban Lindgren, 2013. "Labour market externalities and regional growth in Sweden: The importance of labour mobility between skill-related industries," Papers in Evolutionary Economic Geography (PEEG) 1318, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2013.
  • Handle: RePEc:egu:wpaper:1318
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    Cited by:

    1. Fedorets, Alexandra & Stops, Michael & Lottmann, Franziska, 2017. "Job matching on connected regional and occupational labor markets," IAB Discussion Paper 201735, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Davide Consoli & Francesco Vona & Francesco Rentocchini, 2016. "That was then, this is now: skills and routinization in the 2000s," Industrial and Corporate Change, Oxford University Press, vol. 25(5), pages 847-866.
    3. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. 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.
    5. Zoltán Elekes & Balázs Lengyel, 2016. "Related trade linkages, foreign firms, and employment growth in less developed regions," Papers in Evolutionary Economic Geography (PEEG) 1620, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    6. Rikard H. Eriksson & Emelie Hane-Weijman, 2015. "How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990-2010)," Papers in Evolutionary Economic Geography (PEEG) 1511, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    7. Gidehag, Anton & Lodefalk, Magnus, 2016. "Recruiting for Small Business Growth: Micro-level Evidence," Working Papers 2016:6, Örebro University, School of Business.
    8. Lisa Östbring & Rikard Eriksson & Urban Lindgren, 2015. "Relatedness through experience: On the importance of collected worker experiences for plant performance," Papers in Evolutionary Economic Geography (PEEG) 1530, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2015.
    9. Balázs Lengyel & Rikard H. Eriksson, 2015. "Co-worker networks and productivity growth in regions," Papers in Evolutionary Economic Geography (PEEG) 1513, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    10. repec:wfo:wstudy:58342 is not listed on IDEAS
    11. Balázs Lengyel & Rikard H. Eriksson, 2017. "Co-worker networks, labour mobility and productivity growth in regions," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 635-660.
    12. Ron Boschma & Riccardo Cappelli & Anet Weterings, 2017. "Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants," Papers in Evolutionary Economic Geography (PEEG) 1731, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2017.
    13. Timmermans, Bram & Fitjar, Rune Dahl, 2015. "Skill Relatedness in Norway by Bram Timmermans and Rune Dahl Fitjar," UiS Working Papers in Economics and Finance 2015/20, University of Stavanger.
    14. Grillitsch, Markus & Nilsson, Magnus, 2015. "Firm Performance in the Periphery: On the Relation between Firm-Internal Knowledge and Local Knowledge Spillovers," Papers in Innovation Studies 2015/40, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    15. 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.
    16. repec:bla:growch:v:47:y:2016:i:4:p:648-663 is not listed on IDEAS
    17. Grillitsch, Markus & Nilsson, Magnus, 2017. "Knowledge externalities and firm heterogeneity: Effects on high and low growth firms," Papers in Innovation Studies 2017/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    18. Elekes, Zoltán, 2016. "A regionális növekedés új tényezői az evolúciós gazdaságföldrajzi kutatásokban. A változatosság és a technológiai közelség
      [The new factors of regional growth in research into evolutionary economic
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 307-329.

    More about this item

    Keywords

    agglomeration externalities; related variety; regional growth; labour mobility; related labour market externalities; skill-relatedness;

    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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