Cluster mobility : Impacts of inter-firm labour mobility on firm performance

• The ability for firms and regions to use and generate knowledge is a crucial factor for competitiveness. In an increasing number of studies on cluster dynamics it is assumed that firms in localised clusters are particularly competitive because the concentration of similar and related firms both facilitates knowledge exchange and the generation of new knowledge. One of the fundamental traits of clusters is their systemic characteristics, where firms are related to each other in different ways. In this paper we suggest a cluster definition based on individuals’ job moves between workplaces within local labour markets. The mapping of mobility clusters is made possible by the access to comprehensive longitudinal micro data on socioeconomic characteristics of individuals and their affiliation to firms and workplaces. When controlling for various factors attributed to the workplace and the region it is found that workplaces associated to mobility clusters have significantly better firm performance measured as summed value added and wage sums for workplaces. These estimates seem to be robust for different model specifications. The results of the analyses suggest that knowledge diffusion via job mobility could be an important factor for improved local labour market dynamism and regional development.

Subject headings

SAMHÄLLSVETENSKAP  -- Social och ekonomisk geografi -- Kulturgeografi (hsv//swe)

SOCIAL SCIENCES  -- Social and Economic Geography -- Human Geography (hsv//eng)

Publication and Content Type

vet (subject category)

kon (subject category)