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How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?

Author

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  • Emelie Hane-Weijman
  • Rikard H. Eriksson
  • David Rigby

Abstract

Related diversification has generated considerable interest in policy (smart specialisation) and academic (related branching) circles, linking regional path creation strategies to the capabilities of regions. While previous studies have tended to focus on knowledge- or industry-spaces in regions, we explore the occupation-space. Occupational relatedness and complexity indicators are deployed as independent variables in spatial panel models that account for annual variations in regional employment growth rates in Sweden between 2002 to 2013. Our findings show that in periods of economic expansion, exit from related occupations and entry into complex occupations decreases regional employment growth. These effects are dampened in periods of economic slowdown.

Suggested Citation

  • Emelie Hane-Weijman & Rikard H. Eriksson & David Rigby, 2020. "How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?," Papers in Evolutionary Economic Geography (PEEG) 2011, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    • Handle: RePEc:egu:wpaper:2011
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    File URL: http://econ.geo.uu.nl/peeg/peeg2011.pdf
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    References listed on IDEAS

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    Cited by:

    1. Galetti, Jefferson Ricardo Bretas & Tessarin, Milene Simone & Morceiro, Paulo César, 2020. "Local, Complementarity and Similarity Relatedness in Different Regional and Sectoral Contexts," TD NEREUS 12-2020, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    2. Tom Broekel & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The roles of diversity, complexity, and relatedness in regional development – What does the occupational perspective add?," Papers in Evolutionary Economic Geography (PEEG) 2135, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.

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    More about this item

    Keywords

    related branching; occupation-space; occupational relatedness; complexity; smart specialization; employment growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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

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