How Does Labour Mobility Affect the Performance of Plants? The Importance of Relatedness and Geographical Proximity

Posted: 17 Mar 2009

See all articles by Ron A. Boschma

Ron A. Boschma

Utrecht University - Faculty of Geographical Sciences

Rikard Eriksson

Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE)

Urban Lindgren

Umeå University

Date Written: March 2009

Abstract

This article analyses the impact of skill portfolios and labour mobility on plant performance by means of a unique database that connects attributes of individuals to features of plants for the whole Swedish economy. We found that a portfolio of related competences at the plant level increases significantly productivity growth of plants, in contrast to plant portfolios consisting of either similar or unrelated competences. Based on the analysis of 101,093 job moves, we found that inflows of skills that are related to the existing knowledge base of the plant had a positive effect on plant performance, while the inflow of new employees with skills that are already present in the plant had a negative impact. Our analyses also show that geographical proximity influences the effect of different skill inflows. Inflows of unrelated skills only contribute positively to plant performance when these are recruited in the same region. Labour mobility across regions only has a positive effect on productivity growth of plants when this concerns new employees with related skills.

Keywords: labour mobility, related variety, skill portfolio, plant performance, geographical proximity

JEL Classification: R11, R12, O18

Suggested Citation

Boschma, Ron A. and Eriksson, Rikard and Lindgren, Urban, How Does Labour Mobility Affect the Performance of Plants? The Importance of Relatedness and Geographical Proximity (March 2009). Journal of Economic Geography, Vol. 9, Issue 2, pp. 169-190, 2009, Available at SSRN: https://ssrn.com/abstract=1360038 or http://dx.doi.org/lbn041

Ron A. Boschma (Contact Author)

Utrecht University - Faculty of Geographical Sciences ( email )

Postbus 80.115
3508 TC Utrecht
Netherlands
+31 30 2532896 (Phone)
+31 30 2532037 (Fax)

Rikard Eriksson

Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE) ( email )

P.O. Box 6501
S-113 83 Stockholm, 11383
Sweden

Urban Lindgren

Umeå University

UNIVERSITETSTORGET 4
907 36 Umeå
Sweden

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
343
PlumX Metrics