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Robust labour-flow networks of industries make resilient regions

Author

Listed:
  • Zoltan Elekes
  • Gergo Toth
  • Rikard Eriksson

Abstract

This paper explores how the network structure of local inter-industry labour flows relates to regional economic resilience across 72 local labour markets in Sweden. Drawing on recent advancements in network science we stress-test these networks against the sequential elimination of their nodes, finding substantial heterogeneity in network robustness across regions. Regression analysis with LASSO selection in the context of the 2008 crisis indicates that labour flow network robustness is a prominent structural predictor of employment change during crisis. These findings elaborate on how variation in the self-organisation of regional economies as complex systems makes for more or less resilient regions.

Suggested Citation

  • Zoltan Elekes & Gergo Toth & Rikard Eriksson, 2023. "Robust labour-flow networks of industries make resilient regions," Papers in Evolutionary Economic Geography (PEEG) 2311, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2023.
    • Handle: RePEc:egu:wpaper:2311
    as

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    File URL: http://econ.geo.uu.nl/peeg/peeg2311.pdf
    File Function: Version May 2023
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    local capability base; inter-industry labour flows; skill-relatedness; network robustness; regional economic resilience; regional employment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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