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Identifying Labor Market Areas Based on Link Communities

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  • Goetz, Stephan J.
  • Han, Yicheol

Abstract

Labor Market Areas (LMAs) are distinctive communities of counties within a nation’s commuting network that are closely connected with one another than with other counties. The overlapping of communities within a hierarchical structure is a crucial feature of real-world networks, including commuting, yet existing methods are inadequate for modeling such overlapping because the concept is inconsistent with hierarchical ordering. Ahn et al. (2010) introduced the link community method to address this problem but did not consider weighted and directed links such as commuting flows. In this paper, we extend the link community method to accommodate directed and weighted networks using the idea that edges can be presented as vectors. We then apply our proposed method to U.S. commuting data. Results suggest that our new method reliably identifies the LMAs that we would expect to find. In our case, however, these LMAs can also overlap one another.

Suggested Citation

  • Goetz, Stephan J. & Han, Yicheol, 2015. "Identifying Labor Market Areas Based on Link Communities," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204870, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:204870
    DOI: 10.22004/ag.econ.204870
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    References listed on IDEAS

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    1. T. S. Evans & R. Lambiotte, 2010. "Line graphs of weighted networks for overlapping communities," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 77(2), pages 265-272, September.
    2. Manfred M. Fischer & Peter Nijkamp (ed.), 2014. "Handbook of Regional Science," Springer Books, Springer, edition 127, number 978-3-642-23430-9, September.
    3. Johann Bacher, 2000. "A Probabilistic Clustering Model for Variables of Mixed Type," Quality & Quantity: International Journal of Methodology, Springer, vol. 34(3), pages 223-235, August.
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    Community/Rural/Urban Development;

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