Do Co-Worker Networks Increase or Decrease Productivity Differences?

Do labor mobility and co-worker networks contribute to convergence or divergence between regions? Based on the previous literature, labor mobility contributes to knowledge transfer between firms. Therefore, mobility may contribute to decreasing productivity differences, while limited mobility sustai...

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Autor principal:	László Lőrincz
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	labor mobility co-worker networks regional inequality knowledge spillovers agent-based simulation Science Q Astrophysics QB460-466 Physics QC1-999
Acceso en línea:	https://doaj.org/article/0cc2ce833611434e9e3d54e0fff719f8
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spelling	oai:doaj.org-article:0cc2ce833611434e9e3d54e0fff719f82021-11-25T17:29:45ZDo Co-Worker Networks Increase or Decrease Productivity Differences?10.3390/e231114511099-4300https://doaj.org/article/0cc2ce833611434e9e3d54e0fff719f82021-10-01T00:00:00Zhttps://www.mdpi.com/1099-4300/23/11/1451https://doaj.org/toc/1099-4300Do labor mobility and co-worker networks contribute to convergence or divergence between regions? Based on the previous literature, labor mobility contributes to knowledge transfer between firms. Therefore, mobility may contribute to decreasing productivity differences, while limited mobility sustains higher differences. The effect of co-worker networks, however, can be two-fold in this process; they transmit information about potential jobs, which may enhance the mobility of workers—even between regions—and this enhanced mobility may contribute to levelling of differences. However, if mobility between regions involves movement costs, co-worker networks may concentrate locally—possibly contributing to the persistence of regional differences. In this paper, we build an agent-based model of labor mobility across firms and regions with knowledge spillovers that reflects key empirical observations on labor markets. We analyze the impact of network information provided about potential employers in this model and find that it contributes to increasing inter-regional mobility, and subsequently, to decreasing regional differences. We also find that both the density of coworker networks, as well as their regional concentrations, decrease if network information is available.László LőrinczMDPI AGarticlelabor mobilityco-worker networksregional inequalityknowledge spilloversagent-based simulationScienceQAstrophysicsQB460-466PhysicsQC1-999ENEntropy, Vol 23, Iss 1451, p 1451 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	labor mobility co-worker networks regional inequality knowledge spillovers agent-based simulation Science Q Astrophysics QB460-466 Physics QC1-999
spellingShingle	labor mobility co-worker networks regional inequality knowledge spillovers agent-based simulation Science Q Astrophysics QB460-466 Physics QC1-999 László Lőrincz Do Co-Worker Networks Increase or Decrease Productivity Differences?
description	Do labor mobility and co-worker networks contribute to convergence or divergence between regions? Based on the previous literature, labor mobility contributes to knowledge transfer between firms. Therefore, mobility may contribute to decreasing productivity differences, while limited mobility sustains higher differences. The effect of co-worker networks, however, can be two-fold in this process; they transmit information about potential jobs, which may enhance the mobility of workers—even between regions—and this enhanced mobility may contribute to levelling of differences. However, if mobility between regions involves movement costs, co-worker networks may concentrate locally—possibly contributing to the persistence of regional differences. In this paper, we build an agent-based model of labor mobility across firms and regions with knowledge spillovers that reflects key empirical observations on labor markets. We analyze the impact of network information provided about potential employers in this model and find that it contributes to increasing inter-regional mobility, and subsequently, to decreasing regional differences. We also find that both the density of coworker networks, as well as their regional concentrations, decrease if network information is available.
format	article
author	László Lőrincz
author_facet	László Lőrincz
author_sort	László Lőrincz
title	Do Co-Worker Networks Increase or Decrease Productivity Differences?
title_short	Do Co-Worker Networks Increase or Decrease Productivity Differences?
title_full	Do Co-Worker Networks Increase or Decrease Productivity Differences?
title_fullStr	Do Co-Worker Networks Increase or Decrease Productivity Differences?
title_full_unstemmed	Do Co-Worker Networks Increase or Decrease Productivity Differences?
title_sort	do co-worker networks increase or decrease productivity differences?
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/0cc2ce833611434e9e3d54e0fff719f8
work_keys_str_mv	AT laszlolorincz docoworkernetworksincreaseordecreaseproductivitydifferences
_version_	1718412268260032512

Do Co-Worker Networks Increase or Decrease Productivity Differences?

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