Abstract
Much of the literature on agglomeration emphasises labour mobility between firms as a potential source of externalities. However, while there is a large literature on interregional migration, the empirical literature on the employment-mobility of workers within the local arena is surprisingly thin. Furthermore, there is almost no empirical evidence on the relationship between local and non-local employment movements, especially across industries. In this paper we analyse how agglomeration of the high technology industry as well as regional amenities affects labour mobility. In order to do this we employ panel data on the regional and industrial labour mobility of the Finnish high technology firms and regional economies on a period of 1991–2007. Analysing this dataset allows us to identify the roles which the structure of the high technology sector, regional economic and amenity variables have played both in the inter-regional and inter-sectoral labour mobility of high technology workers over the industry life-cycle. Our findings confirm that the structure of the high technology sector as well as regional economic and amenity variables have an influence on the migration decisions of the high technology workers, and their roles vary in within-region and across-region mobility. In addition, the effects of the variables seem to vary at different stages of the industry life cycle.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In Finland high technology firms and their success in international markets has been an engine of economic growth over the past two decades. The strong growth of information and communication technology cluster in the 1990s (led by Nokia Corporation) made Finland internationally known as a small technology intensive economy where economic growth is mainly based on technology know-how. The strong high technology sector had an extremely important role especially in early 1990s when the Finnish economy was recovering from deep recession. For instance in 2008, the share of high technology sector was about 6% (in 1989, 3.6%) of the total labour force and almost 18% of the total export (in 1991, 6%) (Simonen et al. 2015).
- 2.
Due to the availability of the data, the number of regions in our study is 70 for the period of 1991–2007.
- 3.
The difference between commonly used Herfindahl-Hirschmann index (HHI) and Shannon index is that the HHI assigns higher weights to the largest branches than does the Shannon Index. Therefore the value of HHI is largely driven by the share of the dominant branch, whereas the value of the Shannon Index depends more strongly on shares of several industries. Therefore, it reflects more accurately the variety of the high technology sector in terms of how many industries, including even small ones, are present in a region (Aiginger and Davies 2004; Simonen et al. 2015).
- 4.
We decided to use Random effect models based on the Hausman test. Only in a case of model 1, column 2 in Table 8.4 have we used a Fixed effect model.
References
Aiginger K, Davies SW (2004) Industrial specialization and geographic concentration: two sides of the same coin? Not for the European Union. J Appl Econ 7:231–248
Almeida P, Kogut B (1999) Localisation of knowledge and the mobility of engineers in regional networks. Manag Sci 45:905–917
Angel DP (1991) High-technology agglomeration and the labor market: the case of Silicon Valley. Environ Plan A 23:1501–1516
Arita T, McCann P (2000) The spatial and hierarchical organization of Japanese and US multinational semiconductor firms. J Int Manag 8:121–139
Audretsch DB, Stephan PE (1996) Company-scientist locational links: the case of biotechnology. Am Econ Rev 86:641–652
Carnoy M, Castels M, Benner C (1997) Labour market and employment practises in the age of flexibility: a case of Silicon Valley. Int Labour Rev 136:27–48
de Blasio G, Di Addario S (2005) Do workers benefit from industrial agglomeration? J Reg Sci 45:797–827
De la Roca J, Puga D (2016) Learning by working in big cities. Rev Econ Stud 84(1):106–142
Di Addario S (2011) Job search in thick markets. J Urban Econ 69:303–318
Fallick B, Fleischman CA, Rebitzer JB (2006) Job hopping in Silicon Valley: some evidence concerning the micro-foundations of a high technology cluster. Rev Econ Stat 88(3):472–481
Hanson GH (2000) Firms, workers, and the geographic concentration of economic geography. In: Clark G, Gertler M, Feldmann M (eds) The Oxford handbook of economic geography. Oxford University Press, Oxford, pp 477–494
Hughes G, McCormick B (1981) Do council housing policies reduce migration between regions? Econ J 91:917–937
Kim S (1987) Diversity in urban labor markets and agglomeration economics. Pap Reg Sci Assoc 62:57–70
McCann P, Simonen J (2005) Innovation, knowledge spillovers and local labour markets. Pap Reg Sci 84:465–485
Mukkala K (2008) Knowledge spillovers: mobility of highly educated workers within the high technology sector in Finland. In: Poot J, Waldorf B, van Wissen L (eds) Migration and human capital. Edward Elgar, Cheltenham, pp 131–149
Mukkala K, Tohmo T (2013) Inter-industry job mobility in the knowledge economy in Finland. Int J Manpow 34:918–938
Pissarides C, Wadsworth J (1989) Unemployment and the inter-regional mobility of labour. Econ J 99(397):739–755
Potter A, Watts HD (2011) Evolutionary agglomeration theory: increasing returns, diminishing returns, and the industry life-cycle. J Econ Geogr 11:417–455
Power D, Lundmark M (2004) Working through knowledge pools: labour market dynamics, the transfer of knowledge and ideas, and industrial clusters. Urban Stud 41:1025–1044
Saxenian A (1994) Regional advantage: culture and competition in Silicon Valley and Route 128. Harvard University Press, Cambridge
Scott A, Storper M (1990) Work organization and local labour markets in an era of flexible production. Int Labour Rev 129:573–591
Simonen J, McCann P (2008) Firm innovation: the influence of R&D cooperation and the geography of human capital inputs. J Urban Econ 64(1):146–154
Simonen J, McCann P (2010) Knowledge transfers and innovation: the role of labour markets and R&D cooperation between agents and institutions. Pap Reg Sci 89:295–309
Simonen J, Svento R, Juutinen A (2015) Specialization and diversity as drivers of economic growth: evidence from high-tech industries. Pap Reg Sci 94:229–247
Simonen J, Svento R, McCann P (2016) The regional and sectoral mobility of high technology workers: insights from Finland. Ann Reg Sci 56(2):341–368
Traore N, Rose A (2003) Determinants of biotechnology utilization by the Canadian industry. Res Policy 32:1719–1735
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Simonen, J., Svento, R., Karhinen, S., McCann, P. (2018). Inter-regional and Inter-sectoral Labour Mobility and the Industry Life Cycle: A Panel Data Analysis of Finnish High Technology Sector. In: Biagi, B., Faggian, A., Rajbhandari, I., Venhorst, V. (eds) New Frontiers in Interregional Migration Research. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-319-75886-2_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-75886-2_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-75885-5
Online ISBN: 978-3-319-75886-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)