nep-net New Economics Papers
on Network Economics
Issue of 2017‒04‒30
three papers chosen by
Pedro CL Souza
Pontifícia Universidade Católica do Rio de Janeiro

  1. The Social Effects of Ethnic Diversity at the Local Level: A Natural Experiment with Exogenous Residential Allocation By Yann Algan; Camille Hémet; David Laitin
  2. Regional labour market mobility. A network analysis of inter-firm relatedness By Shamnaaz B. Sufrauj; Giancarlo Corò; Mario Volpe
  3. Propagation of Negative Shocks through Firm Networks: Evidence from simulation on comprehensive supply chain data By INOUE Hiroyasu; TODO Yasuyuki

  1. By: Yann Algan (Département d'économie); Camille Hémet (Aix-Marseille School of Economics); David Laitin (Department of Political Science (Stanford University))
    Abstract: Relying on diversity measures computed at the apartment block level under conditions of exogenous allocation of public housing in France, this paper identifies the effects of ethnic diversity on social relationships and housing quality. Housing Survey data reveal that diversity induces social anomie. Through the channel of anomie, diversity accounts for the inability of residents to sanction others for vandalism and to act collectively to demand proper building maintenance. However, anomie also lowers opportunities for violent confrontations, which are not related to diversity.
    JEL: H10 H41
    Date: 2016–06
  2. By: Shamnaaz B. Sufrauj (Department of Economics, University Of Venice Cà Foscari); Giancarlo Corò (Economics, Languages and Entrepreneurship, University Of Venice Cà Foscari); Mario Volpe (Department of Economics, University Of Venice Cà Foscari)
    Abstract: Labour market rigidity is known to hamper the proper adjustment of an economy, thus, making it less resilient to shocks. This paper investigates the characteristics and resilience of the regional labour flow network in Veneto, a region famous for its industrial districts and the expertise of its workforce. A unique database of inter-firm worker mobility is used and the made-in-Italy relatedness to other industries is quantified. Descriptive results suggest that permanent-contract workers are more mobile within-sector than fixed-term contractors. The latter are more mobile across sectors. A finer disaggregation of the made-in-Italy industries shows that textile, food and woodwork are highly related to leisure-retail, logistics-wholesale and agriculture. These results can orient policy-making in getting faster labour reallocation. Network analysis establishes a number of stylised facts about labour flow networks, in particular, a hierarchical organisation of flows and a preference for workers to move from low-connected to high-connected firms and vice-versa, i.e. disassortativity. Unlike previous research, this paper identifies clusters of a non-spatial nature, that are, based on the intensity of labour flows. Regression analysis shows that labour mobility, both in and out, is beneficial for firms. However, being located inside labour clusters negatively affects firm performance. Interestingly, when these clusters include MNEs, they benefit. These results combined suggest that variety of connections prevails over standardisation.
    Keywords: Labour mobility, network analysis, skill-relatedness cross-industry linkages
    JEL: J24 J62 L14 R23 F23
    Date: 2017
  3. By: INOUE Hiroyasu; TODO Yasuyuki
    Abstract: This paper examines how negative shocks due to, for example, natural disasters, propagate through supply chains, applying a simulation technique to actual data on supply chains of Japanese firms. We obtained the following five results. (1) Network structures severely affect the speed of propagation in the medium run and total loss in the long run. The scale-free nature of the actual supply chain network, i.e., the power law degree distribution, leads to faster propagation, while dense links between firms within the community in the actual network slow propagation. (2) More intensive damages, i.e., larger damages to fewer firms, result in faster propagation than extensive damages of the same total size. (3) When substitution of undamaged suppliers for damaged suppliers is more difficult to achieve, propagation of negative shocks becomes substantially fast. (4) Direct damages in industrial regions promote faster propagation than those in rural regions. (5) Different sectoral damages cause large differences in the speed of propagation and the long-run loss. All of these results imply that the same size of direct damages by disasters can generate considerably different damages, depending on the structure of the supply chain network in the economy.
    Date: 2017–03

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