Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries

Внешние эффекты на рынке труда и региональный рост в Швеции: значение мобильности рабочей силы между отраслями, связанными по квалификациям
Ron Boschma, Rikard Eriksson, Urban Lindgren
2014-01-16

generalized method of momentslabour market externalitieslabour mobilityregional productivity growthskill-related industries
Boschma R., Eriksson R. H. and Lindgren U. Labour market externalities and regional growth in Sweden: the importance of labour mobility between skill-related industries, Regional Studies. This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, it tests for the importance of labour mobility across so-called skill-related industries between 435 four-digit industries within 72 Swedish functional regions (1998–2002). Both the fixed-effect models and generalized method of moments (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 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 unemployment.
1
Both fixed-effects and GMM estimates show that stronger intra-regional labour mobility between skill-related industries increases regional productivity growth.
2
Labour mobility between skill-related industries has a weaker positive relationship with regional employment growth than with productivity growth.
3
Mobility between unrelated industries tends to reduce regional unemployment growth, whereas high intra-industry labour mobility is associated with rising unemployment.
4
The study evaluates labour-market externalities using observed labour flows across 435 four-digit industries in 72 Swedish functional regions during 1998–2002.

Labour mobility and labour flows between industries within Swedish functional regions

The effects of intra-regional labour flows between skill-related, unrelated, and identical industries on regional productivity, employment, and unemployment growth

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2014-01-16
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Ron Boschma
Rikard Eriksson
Urban Lindgren
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