Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283071 
Year of Publication: 
2022
Series/Report no.: 
JRC Working Papers on Corporate R&D and Innovation No. 02/2022
Publisher: 
European Commission, Joint Research Centre (JRC), Seville
Abstract: 
Are recessions drivers of structural change? Here we investigate the resilience of cities, and argue that a re-allocation of labour between industrial sectors in times of crisis induces an acceleration in structural change. Using UK data, we find that cities experienced a sharp increase in inter-sectoral job transitions, and that local employment in skill-related sectors is most strongly associated with employment growth, during the recession, which we identify with the period of employment contraction between 2008 and 2011. This coincides with a massive but short-lived increase in the rate of structural change (i.e. the total change in employment shares of different industries) around 2009. These findings suggest that cities with skill-related sectors re-allocate workers in a crisis, thus inducing structural change.
Subjects: 
Cities
resilience
financial crisis
labour markets
structural change
labour mobility
JEL: 
R11
R12
O14
J62
Creative Commons License: 
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Document Type: 
Working Paper

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