Do Co-Worker Networks Increase or Decrease Productivity Differences?

ABSTRACT: 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

SUBMITTER: Lorincz L 

PROVIDER: S-EPMC8621545 | biostudies-literature | 2021 Oct

REPOSITORIES: biostudies-literature