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  • 1.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Swedish Agency for Growth Policy Analysis, Östersund, Sweden.
    Haapanen, Mika
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE).
    Patterns of inter- and intra-regional differences in human capital and earnings: Evidence from Finland and Sweden 1987–20152021In: Applied Geography, ISSN 0143-6228, E-ISSN 1873-7730, Vol. 135, article id 102539Article in journal (Refereed)
    Abstract [en]

    In this paper, we examine the long-term patterns of geographical disparities in human capital and income in Finland and Sweden over the period 1987–2015. Using nationwide longitudinal population register data, we analyze disparities at different spatial scales, between and within functional labor market regions determined by observed travel-to-work patterns. Contrary to the findings from many other developed economies indicating inter-regional divergence in per capita income, we find indications of inter-regional convergence in per capita earnings among the functional labor market regions in both countries after 2000. However, small, and peripheral regions have not recovered from the macroeconomic shocks in the 1990s, in terms of per capita earnings. Our estimates indicate relatively small and statistically insignificant changes in the geographical dispersion of human capital at the inter-regional scale. At the intra-regional scale, the disparities in human capital and earnings between the core and hinterlands are relatively large and persistent, although some evidence of convergence is found for Finland. The largest intra-regional differences in human capital and earnings are found within the metropolitan labor markets.

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  • 2.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Haapanen, Mika
    Jyväskylä University.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Regional concentration of university graduates: the role of high school grades and parental background2019Report (Other academic)
    Abstract [en]

    In this paper, we analyse long-term changes in the regional distribution and migration flows of university graduates in Finland and Sweden. The study is based on detailed longitudinal population register data, including information on high school grades and parental background. We find a distinct pattern of skill divergence across regions in both countries over the last three decades. The uneven distribution of human capital has been reinforced by the mobility patterns among university graduates, for whom regional sorting by high school grades and parental background is evident. Our findings indicate that traditional measures of human capital concentration most likely underscore actual regional differences in productive skills.

  • 3.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Swedish Agency for Growth Policy Analysis, Sweden.
    Haapanen, Mika
    University of Jyväskylä, Finland.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Regional concentration of university graduates: The role of high school grades and parental background2020In: European Urban and Regional Studies, ISSN 0969-7764, E-ISSN 1461-7145, Vol. 27, no 4, p. 398-414, article id UNSP 0969776420923133Article in journal (Refereed)
    Abstract [en]

    In this paper, we analyse long-term changes in the regional distribution and migration flows of university graduates in Finland and Sweden. This study is based on detailed longitudinal population register data, including information on high school grades and parental background. We find a distinct pattern of skill divergence across regions in both countries over the last 3 decades. The uneven distribution of human capital has been reinforced by the mobility patterns of university graduates, for whom regional sorting by high school grades and parental background is evident. Our findings indicate that traditional measures of human capital concentration most likely underscore actual regional differences in productive skills.

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  • 4.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Growth Analysis, Studentplan 3, 831 40 O¨stersund, Sweden.
    Hansson, Pär
    Are workers more vulnerable in tradable industries?2016In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 152, no 2, p. 283-320Article in journal (Refereed)
    Abstract [en]

    Reduced trade barriers and lower costs of transportation and information have meant that a growing part of the economy has been exposed to international trade. In particular, this is the case in the service sector. We divide the service sector into a tradable and a non-tradable part using an approach to identify tradable industries utilizing a measure of regional concentration of production. We examine whether the probability of displacement is higher and income losses after displacement greater for workers in tradable services and manufacturing (tradable) than in non-tradable services. We also analyze whether the probability of re-employment is higher for workers displaced from tradable services and manufacturing than from non-tradable services. We find that in the 2000s the probability of displacement is relatively high in tradable services in comparison to non-tradable services and manufacturing. On the other hand, the probability of re-employment is higher for those displaced from tradable services. The largest income losses are found for those who had been displaced from manufacturing. Interestingly, the income losses of those displaced from manufacturing seems mainly to be due to longer spells of non-employment, whereas for those displaced in tradable services lower wages in their new jobs compared to their pre-displacement jobs appears to play a larger role.

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  • 5.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Growth Analysis, Studentplan 3, 831 40 Östersund, Sweden.
    Hansson, Pär
    Lindvert, Markus
    Effects of foreign acquisitions on R&D and high-skill activities2017In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 49, no 1, p. 163-187Article in journal (Refereed)
    Abstract [en]

    Using Swedish microdata, we find no evidence for the concerns circulating in the public debate that foreign acquisitions lead to reductions in both R&D expenditures and high-skilled activities in targeted domestic firms for either MNEs or non-MNEs. Previous studies have only focused on larger firms. In this paper, we are able to study the impact on smaller firms (fewer than 50 employees), which is important because 90% of the firms acquired by foreign enterprises meet this criterion. For this group of firms, there is no information on R&D, but by using the register of educational attainment, we obtain data on the share of high-skilled labour in all Swedish firms, irrespective of size. Interestingly, we find that among smaller firms, foreign enterprises tend to acquire high-productive, skill-intensive firms (cherry-picking). After the acquisitions, skill upgrading appears in acquired smaller, non-MNE firms, particularly in the service sector.

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  • 6.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Growth Analysis, Östersund, Sweden.
    Hansson, Pär
    Growth Analysis, Stockholm, Sweden; Örebro University School of Business, Örebro, Sweden.
    Lindvert, Markus
    Growth Analysis, Östersund, Sweden.
    Patterns of employment, skills, and tasks within MNEs associated with offshoring2021In: The World Economy, ISSN 0378-5920, E-ISSN 1467-9701, Vol. 45, no 4, p. 944-970Article in journal (Refereed)
    Abstract [en]

    We examine the relationship between relative demands for skills, non-routine, and non-offshorable tasks in Swedish MNE parents (onshore) and their employment shares in affiliates abroad (offshore). Our estimations suggest that increased employment shares in affiliates abroad (offshore) result in higher relative demand for skills and larger shares of non-routine tasks performed by employed that are highly educated in the parents at home (onshore). However, we do not find any evidence for that the share of non-offshorable tasks rises in the parents of Swedish MNEs when employment shares increase in their affiliates overseas. Furthermore, we estimate the relationships between absolute employment onshore (skilled and less-skilled labour) and employment in affiliates offshore (high- and low-income countries). Increased employment in affiliates in low-income countries relates negatively to the employment of less-skilled workers in manufacturing MNE parents (substitute), whereas increased employment in affiliates in high-income countries correlates positively with the employment of skilled workers in service MNE parents (complement).

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  • 7.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Lindgren, Urban
    Umeå University, Faculty of Social Sciences, Department of Social and Economic Geography.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Geographical Labour Mobility: Migration or Commuting?2003In: Regional Studies, Vol. 37, no 8, p. 827-837Article in journal (Refereed)
    Abstract [en]

    ELIASSON K., LINDGREN U. and WESTERLUND O. (2003) Geographical labour mobility: migration or commuting?, Reg.

    Studies 37, 827–837. In this paper, we examine how individual labour market status and spatial variations in employment

    opportunities influence interregional job search behaviour and mobility decisions in Sweden. The econometric analysis is based

    on 290,000 individual observations and refers to the years 1994–95. The empirical results show that the probability of

    interregional labour mobility unexpectedly decreases with the accessibility to employment opportunities in neighbouring

    regions. As expected, the findings reveal that accessibility to job openings in surrounding regions significantly increases the

    likelihood of choosing commuting as the mobility mode.Moreover, the empirical findings indicate that individual unemployment

    experience increases the likelihood of mobility as well as migration.

  • 8.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Nakosteen, Robert A.
    Isenberg School of Management, University of Massachusetts, MA/ Tufts University, Boston, MA.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Zimmer, Michael A.
    Department of Economics, University of Evansville, Evansville, IN, USA.
    All in the Family: self Selection and Migration by Couples2014In: Papers in regional science (Print), ISSN 1056-8190, E-ISSN 1435-5957, Vol. 93, no 1, p. 101-124Article in journal (Refereed)
    Abstract [en]

    This paper examines determinants of couple migration in a model that accounts for self-selection of migrant couples. The study is based on a sample of married couples from the Swedish population. The model incorporates controls for earnings of both spouses preceding the move, and explicitly addresses unmeasured heterogeneity in the family decision to migrate. Two statistical formulations are presented. In the first version, migration is measured as a dichotomous move/stay decision. A second formulation replaces the dichotomous indicator with the distance moved by migrants. Results suggest that family migration is selective of relatively low earning wives with unmeasured potential for strong earnings.

  • 9.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Graduate migration, self-selection and urban wage premiums across the regional hierarchy2019Report (Other academic)
    Abstract [en]

    We use Swedish longitudinal population register data on university graduates and estimate the effect of migration on earnings. Migration between regional labour markets is used to identify static and dynamic agglomeration effects on earnings. Heterogeneity in effects is examined by individuals’ position in the ability distribution and by origin-destination size categories of regional labour markets. The results indicate that the effect of upward migration (from smaller to larger labour markets) on earnings is positive throughout. Downward migration (from larger to smaller labour markets) is generally associated with negative or no convincing signs of positive effects on earnings. The estimates indicate positive short-term urban wage premiums (UWP) for all origin-destination flows of upward migration, especially high UWP for in-migration to the Stockholm labour market region. The UWP of upward migration is positive also for movers in the lower end of the ability distribution, but it is substantially higher for high ability migrants. We also find evidence of a positive dynamic UWP of migration to Stockholm from the other regions, particularly for high ability migrants.

  • 10.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). The Swedish Agency for Growth Policy Analysis, Sweden.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE).
    Housing markets and geographical labour mobility to high-productivity regions: the case of Stockholm2023In: European Urban and Regional Studies, ISSN 0969-7764, E-ISSN 1461-7145Article in journal (Refereed)
    Abstract [en]

    In many countries, there are signs of declining migration to high-productivity urban areas due to restrictions in the housing market and increasing regional differences in housing prices. Using detailed population-wide register data for Sweden, we estimate how regional variation in housing prices and homeownership is associated with the individual’s decision whether to accept a job offer in the Stockholm metropolitan region and the interrelated choice between migration and commuting as the mobility mode. Our findings indicate that high relative housing prices in the Stockholm area and homeownership are associated with decreasing total geographical labour mobility to the region. This is pronounced among the young and among highly skilled workers. The negative effects of high relative housing prices and homeownership on migration are partially but not fully compensated by positive effects on commuting to Stockholm.

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  • 11.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Tillväxtanalys.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Centre for Demographic and Ageing Research (CEDAR).
    Regional agglomeration of skills and earnings: from convergence to divergence?2018Report (Other academic)
    Abstract [en]

    In this paper, we analyse the geographical distribution of skills and the human capital content of migration flows between Swedish local labour markets. The study is based on detailed longitudinal population register data. During the last three decades, we find a distinct pattern of skill divergence across regions. The uneven distribution of human capital is reinforced by the mobility of the highly educated population. The pattern of skill divergence coincides with declining or even reversed income convergence across Swedish regions. The skilled regions become both more skilled and richer, while the less skilled regions lag behind. This development has potentially important implications for both regional and national economic policy.

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  • 12.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. The Swedish Agency for Growth Policy Analysis, Östersund, Sweden.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Centre for Demographic and Ageing Research (CEDAR). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    The urban wage premium and spatial sorting on observed and unobserved ability2023In: Journal of Economic Geography, ISSN 1468-2702, E-ISSN 1468-2710, Vol. 23, no 3, p. 601-627Article in journal (Refereed)
    Abstract [en]

    We estimate static and dynamic agglomeration effects on earnings among university graduates using Swedish longitudinal population register data. The prime interest lies with whether and how the dynamic effects of big city work experience vary by observed ability of workers and whether the effects are portable after relocation. Urban wage premium and spatial sorting of university graduates are analysed by using information on school grades, parental education and university rank. We find that the value of accumulated big city work experience increases with observed ability. The dynamic premium of working in bigger cities is not lost when moving to smaller cities, suggesting that it reflects learning effects and human capital accumulation. Our findings indicate systematic spatial sorting on observed indicators of ability as well as on unobserved productive traits. Sorting on unobserved abilities is driven primarily by graduates in the upper part of the observed ability distribution and is apparent also when taking dynamic learning effects into consideration.

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  • 13.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Economics.
    Westerlund, Olle
    Umeå University, Faculty of Social Sciences, Economics.
    Åström, Johanna
    Umeå University, Faculty of Social Sciences, Economics.
    Flyttning och pendling i Sverige2007Book (Other academic)
    Abstract [sv]

    Ekonomisk och ekonometrisk analys av flyttningar och pendling mellan lokala arbetsmarknadsregioner i Sverige. Översikt över tidigare forskning, deskriptiv analys av geografisk rörlighet över tiden för olika åldersklasser, regiontyper, utbildningskategorier, kategorier av invandrare och med avseende på kön. Ekonometriska analyser av drivkrafter till flyttning och pendling samt effekter av rörlighet på arbetsinkomster.

  • 14.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Westlund, Hans
    Attributes influencing self-employment propensity in urban and rural Sweden2013In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 50, no 2, p. 479-514Article in journal (Refereed)
    Abstract [en]

    Policies aiming at promoting entrepreneurship are in general formed on national levels, without any consideration of differences between urban and rural areas. Usually, cities are provided with better and more modern infrastructure; cities have better supply of physical, financial and human capital, and connected services, and cities have a more modern industrial structure in the sense that their shares of growing industry are higher. Thus, it is possible that policies for entrepreneurship, which in general are designed for urban areas, might be less effective when they are implemented in rural areas. A first step to test the validity of this hypothesis could be to investigate the differences between cities and countryside regarding self-employment propensity and factors affecting the choice to become self-employed. Based on an exceptionally rich data set containing very detailed socio-economic and geographical information on all residents in Sweden, this paper examines: (a) the scope and structure of self-employment propensity in urban and rural areas, respectively, in Sweden, divided into full-time and part-time self-employment, and (b) the importance of a number of attributes that may have an impact on individuals' propensity to start an enterprise in the two area types. Variables being tested are connected to demography and education, labor market status, plant characteristics, self-employment experience, financial resources, family links and regional attributes. The main results indicate that self-employment entry is influenced by the same factors in the same way in urban and rural areas. However, countryside's industrial structure has a smaller share of growing industries. The fact that countryside's startups follow the existing industrial structure means that this "modernity gap" between densely built up areas and countryside remains. From a policy perspective, this must be seen as a serious problem for countryside's growth potential. This gives an argument for designing a special entrepreneurship policy for the countryside in order to increase its share of growing trades and thereby modernize its industrial structure.

  • 15.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Westlund, Hans
    KTH Royal Institute of Technology, Jönköping International Business School, Sweden.
    Fölster, Stefan
    KTH Royal Institute of Technology, Stockholm, Sweden.
    Does social capital contribute to regional economic growth?: Swedish experiences2013In: Social capital and rural development in the knowledge society / [ed] Hans Westlund; Kiyoshi Kobayashi, Edward Elgar Publishing, 2013, p. 113-126Chapter in book (Refereed)
  • 16.
    Eliasson, Kent
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Westlund, Hans
    Johansson, Mats
    Determinants of Net Migration to Rural Areas, and the Impacts of Migration on Rural Labour Markets and Self-Employment in Rural Sweden2015In: European Planning Studies, ISSN 0965-4313, E-ISSN 1469-5944, Vol. 23, no 4, p. 693-709Article in journal (Refereed)
    Abstract [en]

    Abstract Across most of Europe, the countryside seems to show a polarized development in which large districts are depopulating, while certain areas, mainly around big- and mid-sized cities, are increasing in population. The latter development is often described in concepts of "rural gentrification" and "rurbanization", symbolizing a transformation of rural communities to communities with urban values and lifestyles. Most studies of the effects of these processes have focused on social and cultural consequences, as e.g. the displacements of lower-income households with higher-income residents and of rural culture and values with urban ones. This paper examines the phenomenon from another perspective, namely the effects of the "rurbanization" processes on countryside's labour markets and economic life. This paper aims at analysing the determinants of net migration to rural areas in general and to different types of regions, and the impacts of in-migration on rural labour markets, self-employment and other socio-economic conditions in Sweden for the period of 2003-2005. We find that net migration into rural areas increases with the size of adjacent local and regional centres, whereas net migration decreases with the average commuting distance of workers in the rural areas. When comparing in-migrants to rural areas with rural area stayers, our results indicate that the former has lower incomes, a lower employment ratio and a lower degree of entrepreneurial activities. These differences could-at least partly-be explained by the fact that rural area stayers were on average 6 years older than rural area in-migrants, i.e. the two groups were in different stages of their life cycles.

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