The resilience of regional labour markets to economic shocks

Although increasing attention is being paid to the resilience of regions to economic shocks, theoretical and empirical insights into the determinants of regional resilience remain limited. This paper makes a first step in quantifying regional resilience. A model was used to explore how the following three regional factors jointly contribute to the resilience that regions have to economic shocks: 1) the network of buyer–supplier relationships within and between regions; 2) the level of correlation between industries, which facilitates intersectoral labour mobility; and 3) the geographical position of a region, which determines commuting options.