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Article
Publication date: 28 October 2014

Carlo Gianelle and Giuseppe Tattara

The purpose of this paper is to examine the dynamics of labour market flows over the business cycle through a vacancy chain model. It provides a direct computation of…

Abstract

Purpose

The purpose of this paper is to examine the dynamics of labour market flows over the business cycle through a vacancy chain model. It provides a direct computation of vacancy chains using micro data, empirically investigates the relationship between chain length and the characteristics of jobs and workers initiating the chain, and finally assesses the wage progression of workers moving along the chain.

Design/methodology/approach

The paper draws on a longitudinal matched employer-employee database covering all employees in manufacturing in a large region of Italy. A transparent algorithm for vacancy chain computation is developed and standard econometric techniques are employed to analyze job-to-job transitions within identified chains.

Findings

Vacancy chains account on average for more than one-third of total hires, and both the number and the length of chains are clearly pro-cyclical. Chains set in motion by women workers, young, old, blue collars, or employed by small firms tend to be shorter. There is a well-defined wage progression from the tail to the head of the chain, revealing that workers are sorted along chains according to skill and/or bargaining power.

Research limitations/implications

There is a limited possibility of identifying separately individual ability and bargaining power.

Practical implications

The vacancy chain methodology can increase the ability of policy makers to produce detailed maps of the labour market and identify worker profiles associated with poor outcomes and hence deserving special attention.

Originality/value

For the first time, this paper operationalizes the vacancy chain approach on a large scale, at a very high level of detail, and over a long-time span.

Details

International Journal of Manpower, vol. 35 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

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Article
Publication date: 7 October 2014

Carlo Gianelle, Xabier Goenaga, Ignacio González Vázquez and Mark Thissen

The purpose of this paper is to present a new methodology to assess the outward connectivity among regional economies in the European Union (EU) and derives policy lessons…

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Abstract

Purpose

The purpose of this paper is to present a new methodology to assess the outward connectivity among regional economies in the European Union (EU) and derives policy lessons for the design of regional innovation and competitiveness-enhancing strategic frameworks, with particular reference to research and innovation strategies for smart specialisation (RIS3).

Design/methodology/approach

The authors study the network of inter-regional trade flows in the EU25 in the year 2007. Trade data are taken from the PBL Netherlands Environmental Assessment Agency database and mapped onto weighted directed networks in which the nodes represent regions and the links are flows of goods. The authors measure several structural characteristics of the networks, both global properties and centrality indicators describing the position of individual regions within the system.

Findings

European regions appear to be mostly integrated in the European single market. Strengths and weaknesses of individual regions are discussed based on rankings obtained from network centrality indicators. Specific policy implications in the context of RIS3 are derived in the case of the Spanish region of Andalusia.

Practical implications

The authors show the potential of the methodology for providing a new family of indicators of the external connectivity of regional economies that can be used by regions wishing to develop their own RIS3 for 2014-2020, as required by the EU in the context of the new cohesion policy framework.

Originality/value

The characteristics of a EU-wide inter-regional network of trade flows are obtained and thoroughly discussed for the first time. A unique and original instrument suitable for inter-regional comparison is developed and tested.

Details

European Journal of Innovation Management, vol. 17 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

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