Localized labor flow networks in knowledge-intensive industries

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Abstract

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.

Original languageEnglish
Pages (from-to)1414-1441
Number of pages28
JournalJournal of Regional Science
Volume62
Issue number5
Early online date15 Jun 2022
DOIs
Publication statusPublished - Nov 2022
MoE publication typeA1 Journal article-refereed

Funding

I thank Seppo Laakso, Tuukka Saarimaa, Heidi Falkenbach, the Editor and two anonymous reviewers for their useful comments and suggestions. This study is partially funded by the ROBUST project, as part of the Horizon 2020 Framework Programme of the European Union under Grant Agreement no. 727988. The information and views set out in this article are those of the author and do not necessarily reflect the official opinion of the European Union. Research funding from the Jenny and Antti Wihuri Foundation and the City of Helsinki is also gratefully acknowledged.

Keywords

  • agglomeration
  • interorganizational network
  • job search
  • labor markets
  • location
  • matching
  • proximity

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