Open AccessJournal Article10.1016/J.JEBO.2017.07.003

Inter-industry labor flows

- 01 Oct 2017

- Journal of Economic Behavior and Organiz...

- Vol. 142, pp 275-292

116

TL;DR: In this paper, the authors study inter-industry labor mobility to assess how industry-specific human capital is and to determine which industries have similar human capital requirements, and they find that inter-Industry labor flows are highly concentrated in just a handful of industry pairs.

Abstract: Using German social security data, we study inter-industry labor mobility to assess how industry-specific human capital is and to determine which industries have similar human capital requirements. We find that inter-industry labor flows are highly concentrated in just a handful of industry pairs. Consequently, labor flows connect industries in a sparse network. We interpret this network as an expression of industries similarities in human capital requirements, or skill relatedness. This skill-relatedness network is stable over time, similar for different types of workers and independent of whether workers switch jobs locally or over larger distances. Moreover, in an application to regional diversification and local industry growth, skill relatedness proves to be more predictive than colocation or value chain relations. To facilitate future research, we make detailed inter-industry relatedness matrices online available.

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1. What are the future works mentioned in the paper "Inter-industry labor flows" ?

For instance, relatedness matrices such as the skill-relatedness matrix in this paper have various practical and academic applications, ranging from employment and retraining programs to research in labor economics ( Poletaev and Robinson, 2008 ; Gathmann and Schönberg, 2010 ), economic geography ( Porter, 2003 ; Neffke et al., 2011 ; Boschma et al., 2013 ), development economics ( Hidalgo et al., 2007 ) and strategic management ( e. g., Teece et al., 1994 ; Farjoun, 1994 ; Bryce and Winter, 2009 ; Lien and Klein, 2009 ).. Moreover, their results suggest that analyzing inter-industry flows may offer new ways to study labor markets and the flexibility of a labor force.. This suggests that labor-flow matrices may offer new ways to analyze technological change.. The authors hope that the tools they present in this paper and the skill-relatedness estimates, which they make available as an appendix to this paper,26 will allow making progress on these and other topics.

2. What have the authors contributed in "Inter-industry labor flows" ?

This labor-flow network is relatively stable over time, similar for workers in different occupations and wage categories and independent of whether workers move locally or over larger distances.. To facilitate future research, the inter-industry relatedness matrices the authors develop are made available as an online appendix to this paper.

Citations

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Inter-industry labor flows

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Citations

Economic complexity theory and applications

Global labor flow network reveals the hierarchical organization and dynamics of geo-industrial clusters

Economic complexity and the green economy

Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification

Global labor flow network reveals the hierarchical organization and dynamics of geo-industrial clusters in the world economy.

References

Exploration and Exploitation in Organizational Learning

Toward a Knowledge-Based Theory of the Firm

Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp.

Clusters and the new economics of competition.

The proof and measurement of association between two things.

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