Labour market externalities and regional growth in Sweden: the importance of labour mobility between skill-related industries
2014 (English)In: Regional studies, ISSN 0034-3404, E-ISSN 1360-0591, Vol. 48, no 10, 1669-1690 p.Article in journal (Refereed) Published
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.
Place, publisher, year, edition, pages
2014. Vol. 48, no 10, 1669-1690 p.
agglomeration externalities, related variety, regional growth, labour mobility, related labour market externalities
Research subject Social and Economic Geography
IdentifiersURN: urn:nbn:se:umu:diva-82748DOI: 10.1080/00343404.2013.867429ISI: 000342301500007OAI: oai:DiVA.org:umu-82748DiVA: diva2:662839
FunderSwedish Research Council, 421-2010-1597