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Local labour market performance through different activation rates, input and economic returns to human capital


  • Lasse Sigbjorn Stambol



Abstract Efficient and instant matching of demand and supply of competent labour is one of the most important elements in territorial competitiveness. Well-functioning regions are expected to become net receivers of labour from other regions. In addition these regions are also expected to attract the most qualified labour and thus be the winners in the competition of the best human capital. On the other hand the most qualified labour expect to achieve as much returns to their human capital investments as possible, searching their careers in direction of those regions and sectors which actually gives the best return. The performance of local labour markets is thus analysed as the ability to increase the input of and the returns to human capital investments by using changes in average educational level and changes in incomes. The performance of regional labour markets is further analysed through activation rates to employment by different status groups. In a well functioning and strong growing regional labour market there might be room for a high activation from most groups. In reality the situation may be different, where several of the included activation rates may be in competition with each other. In many regions high net in-migration to jobs may function as an obstacle to high transition from local unemployment to job or from local education to job, while in other regions the situation may be opposite. In the end we thus include an analysis comparing the local activation to jobs in the local labour markets with activation through net in-migration to jobs. The purpose is to explore, describe and analyse the gross flows of labour within and between some chosen local labour markets, which represent different categories according to size and structure of the regional economy. The analysis is broken down on two periods representing recession and economic upswing respectively. Labour market mobility is analysed by measuring regional labour market change by using gross-streams in and out of different regions, sectors and segments, and to what extent and in which way vacancies are opened up and filled in the regional labour markets, by a concise regional vacancy-account.

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  • Lasse Sigbjorn Stambol, 2001. "Local labour market performance through different activation rates, input and economic returns to human capital," ERSA conference papers ersa01p141, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa01p141

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    References listed on IDEAS

    1. Vietorisz, Thomas & Harrison, Bennett, 1973. "Labor Market Segmentation: Positive Feedback and Divergent Development," American Economic Review, American Economic Association, vol. 63(2), pages 366-376, May.
    2. Greenwood, Michael J. & Mueser, Peter R. & Plane, David A. & Schlottmann, Alan M., 1991. "New Directions in Migration Research: Perspectives from Some North American Regional Science Disciplines," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 25(4), pages 237-270.
    3. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-755, September.
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