Discovering the Regional Small World of Labour Mobility. Evidence from Linked Employer-Employee Data

Regional Studies. This paper investigates the structure of inter-firm worker mobility in an industrial region of Northern Italy by using complex network analysis applied to linked employer-employee data. The empirical network reveals a small-world pattern based critically on a small number of hub firms that keep the labour market integrated. Focal firms are: long-established manufacturing companies; wholesalers; and companies that supply the workforce to third parties. The paper discusses the immediate policy implications of these findings as well as the potential of the methodology as a monitoring tool to guide industrial policies aimed at safeguarding and promoting labour reallocation mechanisms.