University of Groningen. How people and jobs find each other Morkute, Gintare

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1 University of Groningen How people and jobs find each other Morkute, Gintare IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2017 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Morkute, G. (2017). How people and jobs find each other: Micro-level spatial adjustment mechanisms between human capital supply and demand [Groningen]: University of Groningen Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date:

2 How people and jobs find each other Micro-level spatial adjustment mechanisms between human capital supply and demand Gintarė Morkutė

3 The research presented in this book was conducted at the Faculty of Spatial Sciences at the University of Groningen. ISBN: ISBN (E-Publication): English language editing: Giles Stacey, Englishworks (Chapters 1-2, 4-6), Herman Stevens (Chapter 3), Steven Forrest (Propositions and Acknowledgements) Dutch language editing: Marije Hamersma Cover design: Paul de Vreede ( Layout inside: Rachel van Esschoten, DivingDuck Design ( Printed by: Gildeprint Drukkerijen, Enschede ( Gintarė Morkutė, 2017 All rights reserved. Save the exceptions stated by the law, no part of this publication may be reproduced in any form, by print, photocopying, or otherwise, without the prior written permission from the author.

4 How people and jobs find each other Micro-level spatial adjustment mechanisms between human capital supply and demand PhD thesis to obtain the degree of PhD at the University of Groningen on the authority of the Rector Magnificus Prof. E. Sterken and in accordance with the decision by the College of Deans. This thesis will be defended in public on Thursday 21 December 2017 at hours by Gintarė Morkutė born on 11 March 1987 in Šiauliai, Lithuania

5 Supervisor Prof. J. van Dijk Co-supervisor Dr. S. Koster Assessment Committee Prof. L.J.G. van Wissen Prof. F. Cörvers Prof. A.K. Niebuhr

6 Content List of Tables... IV List of Figures...V Overview of Chapters...VII 1 Introduction Research motivation Utilizing human capital in a modern economy The matching of employers and employees in space Research aim and research question Approach Research outline Temporal and geographical context...11 References Employment growth and inter-industry job reallocation: spatial patterns and relatedness Introduction Industry shifts and human capital reallocation Data and approach Descriptive findings Regression analysis The underlying structure of the data Regression model Regressions results Additional analyses Conclusions...40 References...43 Appendix Human capital as a location factor: an empirical investigation of relocating firms and their labour force in the Netherlands Introduction The role of human capital in firm relocation Empirical strategy Data and approach Models specification...60 I

7 3.4 Results Descriptive statistics Human capital as a keep factor in firm relocation Results Robustness checks Human capital as a pull factor in firm relocation Results Robustness checks Conclusions...75 References...78 Appendix The role of signalling in wage persistence in the Netherlands Introduction Literature review Proposed signalling mechanism Empirical strategy Data Results Labour market conditions and wage distribution shifts Wage persistence The role of signalling in wage persistence Robustness checks Conclusions References Appendix Location-specific knowledge in spatial job search and its outcomes: an empirical investigation Introduction Job matching in space Empirical strategy Data and models Results Conclusions and discussion References Appendix II

8 6 Conclusions Main findings Employer adjustments through job creation/destruction Employer adjustments through job relocation Accessing labour market information: signalling Accessing labour market information: job search in space Discussion Policy recommendations Suggestions for future research Main conclusions References Samenvatting in het Nederlands Acknowledgements III

9 List of Tables Table 2.1. The intraclass correlation coefficients of the dependent variable across different dimensions of the panel for all industries, not weighted...32 Table 2.2. Regressing employment growth in growing industries on the job loss and magnitude of released labour force in the region...36 Table 2.3. Regressing employment growth in growing industries on the job loss and magnitude of released labour force in the region, different specifications...39 Table 3.1. Operationalization of variables used in analyses...62 Table 3.2. Comparison of relocating and non-relocating firms...66 Table 3.3. The effects of different aspects of human capital on firm s propensity for long-distance relocation, log odds...69 Table 3.4. Effects of firm relocation on education level of employees and mean hiring distance...73 Table 4.1. The results of regressions on wage difference at S+4A Table 4.2. Robustness checks results Table 5.1. The operationalization of variables used in the regressions Table 5.2. The results of the conditional logit model on the choice of a new working region Table 5.3. The results of regressions on wage growth Table 5.4. Treatment effects: outcome and treatment assignment equations IV

10 List of Figures Figure 2.1. Composition of the inflows of the most rapidly growing industries (in FTEs) by the location and the industry of previous job...29 Figure 2.2. Composition of the inflows of the most rapidly growing industries (in FTEs) by employees residential location and the industry of previous job...31 Figure 2.3. Quantile regression coefficients regressing employment growth in growing industries on the job loss and magnitude of released labour force in the region...38 Figure 3.1. Comparison of job dynamics in relocating and nonrelocating firms...64 Figure 3.2. Comparison of distance to employees in relocating and nonrelocating firms...67 Figure 3.3. Comparison of education level in relocating and nonrelocating firms...67 Figure 4.1. The scheme of of the wage development comparisons...99 Figure 4.2. Development in employment rate and median graduate starting wage over time Figure 4.3. Wage distributions for the second quarters of 2006 and Figure 4.4. Wage distributions for the first quarters of 2009 and Figure 4.5. Predictive margins of tenure at different values of the difference in starting wages Figure 4.6. Contour plot: difference in wages at S+4A as a function of difference in starting wages and tenure (full sample) Figure 4.7. Contour plot: difference in wages at S+4A as a function of differences in starting wages and tenure (stayers) Figure 4.8. Contour plot: difference in wages at S+4A as a function of differences in starting wages and tenure (switchers) Figure 4.9. Contour plot: difference in wages at S+4A as a function of difference in starting wages and tenure after adjusting starting wages (switchers) Figure Contour plot: difference in wages at S+4A as a function of the difference in starting wage and tenure having accounted for differences in cohort characteristics (switchers) V

11 Figure Contour plot: difference in wages at S+4A as a function of the difference in starting wages and tenure: only graduates in starting wage centiles (switchers) Figure 5.1. The geographical spread of population centres in the Netherlands in Figure 5.2. Proportion of region switchers depending on the tenure in the region VI

12 Overview of Chapters Chapter 2. Employment growth and inter-industry job reallocation: spatial patterns and relatedness Reprinted from: Morkutė, G., Koster, S., & van Dijk, J. (2016). Employment growth and inter-industry job reallocation: spatial patterns and relatedness. Regional Studies, 51(6), Chapter 3. Human capital as a location factor: an empirical investigation of relocating firms and their labour force in the Netherlands Reprinted from: Morkutė, G., & Koster, S. (2016). Human capital as a location factor: An empirical investigation of relocating firms and their labour force in the Netherlands. Papers in Regional Science. doi: /pirs Chapter 4. The role of signalling in wage persistence in the Netherlands Submitted to an international peer-reviewed journal. Chapter 5. Location-specific knowledge in spatial job search and its outcomes: an empirical investigation Submitted to an international peer-reviewed journal. VII

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