Inter-industry labour flows as an auxiliary instrument in researching Latvian industrial clusters
2010
Vilcina, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Economics | Boronenko, V., Daugavpils Univ. (Latvia). Faculty of Social Sciences. Inst. of Social Studies
The rapidly increasing literature on labour mobility has shown that the intensity and the patterns of worker flows have important implications not only on the labour markets, but also on the productivity growth and overall industrial renewal in general. Furthermore, employment mobility constitutes a channel for knowledge and technology diffusion between academics, companies and industries, creating clusters on the industries’ level. The present research focuses, in addition to measuring the intensity of inter-industry labour mobility, on establishing the employment transition linkages (or labour flow paths) between industries. The authors use the experience of the Research Institute of the Finnish Economy (ETLA) – the quantitative measuring of the patterns of worker flows between industries as well as anonymous individual data from the Labour Force Survey of Latvian Statistics to implement the Finnish research tool in Latvia. The authors are planning to examine the directions of labour flows, i.e. from where to where the transitions are made as well as the strength of these linkages, i.e. how common it is in relative terms that a worker in an industry moves to a different industry (or to non-employment). These aspects are then reflected in the discussion of labour market shocks and industry life cycles, where the entry and exit of workers is a significant indicator of the growth and decline of industries. The method of labour flows explains partly the state and dynamics of some industrial clusters as well as the modern performance of Latvian industries in the human capital aspect. The authors’ empirical analysis is based on the application of longitudinal employer-employee data that cover the whole working age population in Latvia.
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