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Media type:
E-Book
Title:
Regional diversification and labour market upgrading
:
local access to skill-related high-income jobs helps workers escaping low-wage employment
Description:
This paper investigates how the evolution of local labour market structure enables or constrains workers as regards escaping low-wage jobs. Drawing on the network-based approach of evolutionary economic geography, we employ a detailed individual-level panel dataset to construct skill-relatedness networks for 72 functional labour market regions in Sweden. Subsequent fixed-effect panel regressions indicate that increasing density of skillrelated high-income jobs within a region is conducive to low-wage workers moving to betterpaid jobs, hence facilitating labour market upgrading through diversification. While metropolitan regions offer a premium for this relationship, it also holds for smaller regions, and across various worker characteristics.