How regions diversify into new jobs: from related industries or related occupations?Deegan, Jason; Broekel, Tom; Haus-Reve, Silje; Fitjar, Rune Dahl
doi: 10.1080/00343404.2024.2335265pmid: N/A
This paper adds a multidimensional perspective to the study of related diversification. We examine how regions diversify into new jobs – defined as unique industry-occupation combinations – asking whether they do so from related industries or related occupations. We use linked employer-employee data for all labour market regions in Norway, covering the time period 2009–2014. Diversification into new jobs is more likely in the presence of related occupations and industries in a region. Furthermore, occupational and industrial relatedness have complementary effects on diversification. Occupational relatedness and its interaction with industrial relatedness are particularly important for diversification into more complex activities.
Industrial robots, and information and communication technology: the employment effects in EU labour marketsJestl, Stefan
doi: 10.1080/00343404.2023.2292259pmid: N/A
This paper explores the effects of industrial robots and information and communication technology (ICT) on regional employment in European Union countries. The empirical analysis relies on a harmonised comprehensive regional dataset that combines business statistics and national and regional accounts data. This rich dataset enables us to provide detailed insights into the employment effects of automation and computerisation in EU regions for the period 2001–16. The results suggest relatively weak effects on regional total employment dynamics. However, industrial robots show negative employment effects in local manufacturing industries and positive employment effects in local non-manufacturing industries. While the negative effect is concentrated in particular local manufacturing industries, the positive effect has operated in local service industries. Information technology investments show positive employment effects in local manufacturing industries and some individual local service industries, while communication technology investments are shown to be irrelevant for employment dynamics. In contrast, software and database investments have had a predominantly negative association with local employment.
Agglomeration economies: different effects on TFP in high-tech and low-tech industriesGornig, Martin; Schiersch, Alexander
doi: 10.1080/00343404.2024.2318454pmid: N/A
We study the impact of agglomeration effects on firms’ total factor productivity (TFP) for industry groups defined by technology intensity. This allows for non-uniform effects on firms depending on their technological level. We find that urban economies have the largest impact on firm productivity in high-technology industries, while they have no effect in low-technology industries. For firms in the latter industries, the diversity of the local economic structure is relevant. Localisation effects have a consistently positive and significant impact on TFP, with the effect increasing with the technology intensity of the industries.
Cultural proximity and interregional industrial linkages: knowledge diffusion or transaction costs?Qiliang, Mao; Xianzhuang, Mao
doi: 10.1080/00343404.2023.2281449pmid: N/A
This paper explores the impact of cultural proximity on interregional industrial linkages using evidence from China. The results show that cultural distance hinders horizontal industrial linkages between regions, but does not limit the formation of vertical industrial linkages. Cultural proximity affects interregional industrial cooperation strategies primarily through knowledge diffusion rather than transaction costs. Cultural proximity favours the formation of transregional social networks and the cognition of localised tacit knowledge. Consequently, regions that are culturally similar to one another have a comparative information advantage in forming horizontal industrial linkages.
Disentangling agglomeration economies from selection under policy distortions in ChinaHowell, Anthony; Li, Robin; Bagchi-Sen, Sharmistha; Lobo, José
doi: 10.1080/00343404.2023.2281437pmid: N/A
This paper explores the competing sources of productivity gains observed in China’s urban agglomerations focusing on three pillar industries: agro-food processing, textiles and electronics. The main results reveal that the higher aggregate productivity observed in denser Chinese cities is driven by both agglomeration and selection forces. Subsequent analysis shows that industrial support policies help to mitigate the selection penalty, but come at the expense of reducing agglomeration benefits. Complementing the city-level analysis, we estimate dynamic and distributive firm-level panel data models to explore the policy rationale of propping up inefficient firms, despite creating a less competitive environment. The micro-based results reveal that inefficient firms targeted by industrial support policies benefit from productivity spillovers in denser cities, mainly in the electronics industry, providing some policy rationale for keeping them in the market.
Intermunicipal cooperation in public procurementArachi, Giampaolo; Assisi, Debora; Cesi, Berardino; Giuranno, Michele G.; Russo, Felice
doi: 10.1080/00343404.2024.2350615pmid: N/A
This study evaluates the impact of intermunicipal cooperation on public procurement (PP) performance, based on the Italian experience. We use both a fixed-effects regression model and alternative matching estimators to analyse a sample of 50,905 Italian public works contracts awarded by municipalities and municipal unions (MUs) between 2012 and 2020. Our results indicate that while local centralisation does not necessarily lead to significant cost savings in the procurement phase, MUs outperform individual municipalities in the execution phase, especially in terms of reducing delivery delays. We conclude that while MUs do not necessarily lead to strong economies of scale, they do improve efficiency during contract execution. This highlights the alternative benefits of PP centralisation beyond cost savings.
Regional intergenerational mobility in Ecuador: many lands in one countrySegovia, Joselin; Ramos, Raul
doi: 10.1080/00343404.2024.2350611pmid: N/A
We analyse the regional differences in eight measures of intergenerational mobility across cantons in Ecuador. Within-country estimates show heterogeneity with lands of opportunity, such as the Galápagos, and areas where poverty traps prevail, namely the Central Andes. This study also finds that better opportunities for children are associated with locations that have higher levels of migration, schooling, agriculture, family self-employment and oil activity, while inequality and the share of Indigenous people provide worse opportunities for mobility. These relationships are reinforced by spillovers across space, which, in Ecuador, are more likely to result in poverty cycles than privilege ones.
Migrants and boomtowns: evidence from the US shale boomRajbhandari, Isha; Faggian, Alessandra; Partridge, Mark
doi: 10.1080/00343404.2024.2317918pmid: N/A
This paper analyses if and how oil and gas developments foster in-migration of workers into boomtowns. In particular, we focus on the workers’ human capital, as a way to help local growth. Using a zero-inflated negative binomial model, we find that oil and gas shocks, on average, take three years to significantly impact migration flows into boomtowns. The migration response is heterogeneous with a disproportionately higher positive effect for medium-high human capital workers. The types of human capital gained by rural and sparsely populated boomtowns can have important policy implications for their long-run growth and economic resilience.