Localized labor flow networks in knowledge-intensive industries

This study examines the relationship between agglomeration and labor market matching by investigating the small-scale sociospatial determinants of a network created by the within-region mobility of employees across organizations. The local labor flow network is constructed on the basis of an establishment-level matched employer–employee database covering selected knowledge-intensive industries in the Helsinki–Uusimaa Region in Finland during the period 2001–2015. The results from the analysis of various tie formation processes reveal that the formation of a link by interorganizational employee mobility within an integrated labor market area is more likely between organizations geographically closer to each other, all else being equal. The findings highlight the importance of local density for the job search process.