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Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries

Ron Boschma (), Rikard H. Eriksson and Urban Lindgren

Regional Studies, 2014, vol. 48, issue 10, 1669-1690

Abstract: Boschma R., Eriksson R. H. and Lindgren U. Labour market externalities and regional growth in Sweden: the importance of labour mobility between skill-related industries, Regional Studies . This study investigates the relationship between labour market externalities and regional growth based on real labour flows. In particular, it tests for the importance of labour mobility across so-called skill-related industries between 435 four-digit industries within 72 Swedish functional regions (1998-2002). Both the fixed-effect models and generalized method of moments (GMM) estimates demonstrate that a strong intensity of intra-regional labour flows between skill-related industries impacts positively on regional productivity growth, but less so on employment growth. Labour mobility between unrelated industries tends to dampen regional unemployment growth while a high degree of intra-industry labour flows is only found to be associated with rising unemployment.

Date: 2014
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DOI: 10.1080/00343404.2013.867429

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