Regional Labour Market Mobility. A Network Analysis of Inter-Firm Relatedness

41 Pages Posted: 11 Jul 2017

See all articles by Shamnaaz B. Sufrauj

Shamnaaz B. Sufrauj

Ca Foscari University of Venice - Dipartimento di Economia

Giancarlo Corò

Ca Foscari University of Venice - Dipartimento di Economia

Mario Volpe

Ca Foscari University of Venice

Date Written: June 13, 2017

Abstract

Labour market rigidity is known to hamper the proper adjustment of an economy, thus, making it less resilient to shocks. This paper investigates the characteristics and resilience of the regional labour flow network in Veneto, a region famous for its industrial districts and the expertise of its workforce. A unique database of inter-firm worker mobility is used and the made-in-Italy relatedness to other industries is quantified. Descriptive results suggest that permanent-contract workers are more mobile within-sector than fixed-term contractors. The latter are more mobile across sectors. A finer disaggregation of the made-in-Italy industries shows that textile, food and woodwork are highly related to leisure-retail, logistics-wholesale and agriculture. These results can orient policy-making in getting faster labour reallocation. Network analysis establishes a number of stylised facts about labour flow networks, in particular, a hierarchical organisation of flows and a preference for workers to move from low-connected to high-connected firms and vice-versa, i.e. disassortativity. Unlike previous research, this paper identifies clusters of a non-spatial nature, that are, based on the intensity of labour flows. Regression analysis shows that labour mobility, both in and out, is beneficial for firms. However, being located inside labour clusters negatively affects firm performance. Interestingly, when these clusters include MNEs, they benefit. These results combined suggest that variety of connections prevails over standardisation.

Keywords: Labour Mobility, Network Analysis, Skill-Relatedness, Cross-Industry Linkages

JEL Classification: J24, J62, L14, R23, F23

Suggested Citation

Sufrauj, Shamnaaz B. and Corò, Giancarlo and Volpe, Mario, Regional Labour Market Mobility. A Network Analysis of Inter-Firm Relatedness (June 13, 2017). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 06/WP/2017. Available at SSRN: https://ssrn.com/abstract=2998164 or http://dx.doi.org/10.2139/ssrn.2998164

Shamnaaz B. Sufrauj (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Giancarlo Corò

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Mario Volpe

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

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