Three-Step Method for Delineating Functional Labour Market Regions

Abstract

Kropp P. and Schwengler B. Three-step method for delineating functional labour market regions, Regional Studies. This paper proposes a new three-step method to find delineations that adequately define functional regions with strong interactions within the region and few connections with outside areas based on commuting flows. A graph-theoretical approach is used to create many meaningful delineations for labour market regions in Germany and the modularity concept from network analysis is employed to select the delineation that captures the commuting flows best. As a result, a delineation of 50 German labour market regions that are quite heterogeneous in terms of size is obtained. Using the modularity measure, the current delineation is compared with previous functional delineations.

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