The resilience of regional labour markets to economic shocks: Exploring the role of interactions among firms and workers

Diodato, Dario; Weterings, Anet

doi:10.1093/jeg/lbu030

Cited by 157 publications

(136 citation statements)

References 15 publications

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“…Exceptions are the works of Fingleton and Palombi (2013) and Diodato and Weterings (2014). The former contribution explain the different degree of economic resilience showed by the British towns during the Victorian era by means of the sectoral composition of local employment and industrial specialization; the latter one relate the uneven economic resilience of Dutch regions to the interplay of factors like the intra-and inter-industry productive linkages, and the mobility of workers within and across regions.…”

Section: The Determinants Of Regional Resiliencementioning

confidence: 99%

“…The second-step of our analysis investigates which factors can explain the geographical asymmetries in economic resilience detected in the first-step, contributing to a growing literature looking at the determinants of resilience on a regional level (Fingleton and Palombi, 2013;Diodato and Weterings, 2014). Differences in regional resilience are explored by focusing on a specific set of explaining variables -such as the role of economic diversity, export propensity, human and social capital, and financial constraintsthat have been built upon the main determinants of resilience presented in Martin and Sunley (2014).…”

Section: Introductionmentioning

confidence: 99%

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Testing and Explaining Economic Resilience with an Application to Italian Regions

2014

SSRN Journal

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This paper studies regional economic resilience by exploiting the properties of the nonlinear smooth-transition autoregressive model. A testing procedure to distinguish between engineering and ecological resilience is presented, and a measurement of economic resilience is provided. Regional differences in economic resilience are explained by the presence of spatial interactions and by adopting a set of determinants like economic diversity, export performance, financial constraints, and human and social capital. An empirical investigation is conducted for analysing regional employment evolution in Italy from 1992 to 2012. Some concluding suggestions propose possible future areas of research.

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Section: The Determinants Of Regional Resiliencementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Testing and Explaining Economic Resilience with an Application to Italian Regions

2014

SSRN Journal

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“…There has been much less interrogation of the role of technological innovation in the resistance and recovery dimensions of resilience although there is some evidence that related variety can act as a shock absorber for sector-specific shocks in certain circumstances, notably where skills can apply across related industries. This is because the redundant employees can more easily find jobs in a region where other industries may make use of their skills (Diodato and Weterings 2014). This also prevents the destruction of human capital in a region as well as the outflow of highly skilled people to other regions (Boschma 2015).…”

Section: The Role Of Innovation In Resilience: An Evolutionary Perspementioning

confidence: 99%

Innovation and regional economic resilience: an exploratory analysis

2017

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The varying rates of recovery of European regional economies from the 2007 to 2008 economic crisis have raised interesting questions about the sources of economic resilience. Policy discourse has increasingly asserted the role played by innovation in facilitating rapid recovery from economic shocks, whilst evolutionary thinking has highlighted the specific importance of innovation capacity. However, empirical evidence on this is lacking. This paper addresses this gap by providing new empirical analysis of the relationship between regional innovation capacity and the resilience of European regions to the crisis. It finds that regions identified as Innovation Leaders at the time of the crisis were significantly more likely to have either resisted the crisis or recovered quickly from it (i.e. within 3 years). This provides important insights for evolutionary approaches theorising the relationship between innovation and resilience. JEL Classification R1 · O3

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“…Since previous studies highlight the importance of industry mix for understanding regional differences in resilience (Diodato and Weterings, 2015), we address this in the form of related and unrelated diversity and regional specialization. Related variety is based on the skill-relatedness concept developed by Neffke and Svensson-Henning (2013), in which they argue that high proportions of labour flows between two industries (given differences in wages and growth) are an indicator of cognitive proximity since this captures how transferable human capital is between sectors.…”

Section: Datamentioning

confidence: 99%

How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990–2010)

Eriksson

Hane-Weijman

2016

European Urban and Regional Studies

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Using Swedish longitudinal micro-data, the aim of this paper is to analyse how regional economies respond to crises. This is made possible by linking gross employment flows to the notion of regional resilience. Our findings indicate that despite a steady national employment growth, only the three metropolitan regions have fully recovered from the recession of 1990. Further, we show evidence of high levels of job creation and destruction in both declining and expanding regions and sectors, and that the creation of jobs is mainly attributable to employment growth in incumbent firms, while job destruction is primarily due to exits and micro-plants. Although the geography of resistance to crises and the ability of adaptability in the aftermath vary, our findings suggest that cohesive (i.e., with many skill-related industries) and diverse (i.e., with a high degree of unrelated variety) regions are more resilient over time. We also find that resistance to future shocks (e.g., the 2008 recession) is highly dependent on the resistance to previous crises. In all, this suggests that the long-term evolution of regional economies also influences their future resilience.

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The resilience of regional labour markets to economic shocks: Exploring the role of interactions among firms and workers

Cited by 157 publications

References 15 publications

Testing and Explaining Economic Resilience with an Application to Italian Regions

Testing and Explaining Economic Resilience with an Application to Italian Regions

Innovation and regional economic resilience: an exploratory analysis

How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990–2010)

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