The Regional Economics of Knowledge and Talent

The Regional Economics of Knowledge and Talent

Local Advantage in a Global Context

New Horizons in Regional Science series

Edited by Charlie Karlsson, Börje Johansson and Roger R. Stough

The distinguished contributors advance the current research frontier in three novel directions which focus on: the role of human capital and talent for creativity, entrepreneurship and regional development; the role of institutions for the behaviour of firms and entrepreneurs; and the influence of the global context on the location, export and innovation behaviour of firms in a knowledge economy.

Chapter 7: Free Versus Monitored Job Search

Michael Olsson

Subjects: business and management, knowledge management, economics and finance, regional economics, innovation and technology, knowledge management, urban and regional studies, regional economics


in Sweden Michael Olsson Both jobseekers and vacancies are spatially distributed. A jobseeker has accessibility to vacancies and a vacancy has accessibility to applicants, and these accessibility measures vary across locations. Left alone, an individual most often prefers to search for a job close to the present home address. The unemployment benefit rules state rather strict mobility requirements. Using these rules changes the accessibility measures at all places. In other words, monitoring job search affects both the search intensity and the level of competition. This directly affects where a jobseeker finds a job. It is shown that an increased mobility follows from a strict usage of the rules. The increased mobility of individuals implies additional transfer of knowledge and ideas. 7.1 INTRODUCTION The accessibility concept has been used in many different studies: Johansson et al. (2002) study labour market integration, Johansson et al. (2003) study commuting, Andersson and Ejermo (2005) study knowledge sources and innovativeness of corporations, Karlsson and Olsson (2006) study how to define functional regions, Johansson and Karlsson (2007) study R&D and export diversity, and Andersson and Gråsjö (2009) study representations of space in empirical models. Geographical mobility is often mentioned as a key method to improve the outcome on the labour market. Labour mobility is fundamental in the Swedish unemployment benefit rules (IAF, 2004; Regeringen, 2006). Both jobseekers and vacancies are spatially distributed. Given a job-search strategy, the accessibility to vacancies varies with residence location and the accessibility to applicants varies with firm location. In...

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