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Delineating Functional Labour Market Areas with Estimable Classification Stabilities

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  • Davies, Benjamin

    (Motu Economic and Public Policy Research Trust)

  • Maré, David C.

    (Motu Economic and Public Policy Research Trust)

Abstract

We describe an unsupervised method for delineating functional labour market areas (LMAs) in national commuting networks. Our method uses the Louvain algorithm, which we extend to support top-down hierarchical LMA classification and estimable classification stabilities. We demonstrate our method using historical Census commuting data from New Zealand.

Suggested Citation

  • Davies, Benjamin & Maré, David C., 2020. "Delineating Functional Labour Market Areas with Estimable Classification Stabilities," IZA Discussion Papers 13642, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13642
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    References listed on IDEAS

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    2. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    3. Pierre-Alexandre Balland & Cristian Jara-Figueroa & Sergio G. Petralia & Mathieu P. A. Steijn & David L. Rigby & César A. Hidalgo, 2020. "Complex economic activities concentrate in large cities," Nature Human Behaviour, Nature, vol. 4(3), pages 248-254, March.
    4. Papps, Kerry L. & Newell, James O., 2002. "Identifying Functional Labour Market Areas in New Zealand: A Reconnaissance Study Using Travel-to-Work Data," IZA Discussion Papers 443, Institute of Labor Economics (IZA).
    5. Arnaud Adam & Jean-Charles Delvenne & Isabelle Thomas, 2018. "Detecting communities with the multi-scale method: Robustness test on the metropolitan area of Brussels," LIDAM Reprints CORE 2982, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Isabelle Thomas & Arnaud Adam & Ann Verhetsel, 2017. "Migration and commuting interactions fields: A new geography with community detection algorithm?," LIDAM Reprints CORE 2946, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. LAMBIOTTE, Renaud & DELVENNE, Jean-Charles & BARAHONA, Mauricio, 2014. "Random walks, Markov processes and the multiscale modular organization of complex network," LIDAM Reprints CORE 2660, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    More about this item

    Keywords

    community detection; commuting; functional boundaries; labour market areas; networks;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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