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Robust labour-flow networks of industries make resilient regions

Zoltan Elekes, Gergo Toth and Rikard Eriksson

No 2311, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

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.

Keywords: local capability base; inter-industry labour flows; skill-relatedness; network robustness; regional economic resilience; regional employment (search for similar items in EconPapers)
JEL-codes: J21 L14 R11 R23 (search for similar items in EconPapers)
Date: 2023-05, Revised 2023-05
New Economics Papers: this item is included in nep-des, nep-geo, nep-lma, nep-net, nep-tid and nep-ure
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