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Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU

journal contribution
posted on 2023-06-09, 02:01 authored by Nadia Garbellini, Ariel Luis Wirkierman
Clusters and subsystems are two frequently used tools in inter-industry analysis, the former clarifying structure while the latter summarising circularity. Since industry blocks with crucial direct linkages will probably have strong indirect ties as well, localised intra-cluster feedback effects may play a prominent role in explaining total labour requirements. In this paper, we first quantify the labour redistribution taking place between industries and subsystems within and between clusters. Next, we extend the standard notion of vertically integrated labour to account for intra- and extra-cluster circularity, quantifying the extent to which overall productivity growth in every subsystem originates from intra-cluster industries. Both issues are illustrated for the consolidated European Union (EU27) economy between 2000 and 2007.

History

Publication status

  • Published

Journal

Structural Change and Economic Dynamics

ISSN

0954-349X

Publisher

Elsevier

Volume

28

Page range

60-74

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2016-07-04

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