Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2012:25: Endogenous tie formation mechanisms in a directed network generated by employee mobility

Francois Collet () and Peter Hedström ()
Additional contact information
Francois Collet: Esade, Department of People Management and Organisation, Postal: Spain
Peter Hedström: The Institute for Future Studies, Postal: Stockholm, Sweden

Abstract: This study investigates mechanisms of tie formation in an interorganizational network generated by the mobility of employees between organizations. We analyze a data set that contains information on all organizations in the Stockholm metropolitan area between 1990 and 2003. We show that the formation of new ties is contingent upon the direction of past ties, and that most connections occur at an intermediate geodesic distance of 2 and 3. The findings highlight the importance of tie direction and indirect connections in research on network dynamics and knowledge exchanges stemming from the mobility of employees across organizations.

Keywords: labor markets; mobility; interorganizational network; information flow; directed ties

JEL-codes: Z13

35 pages, December 11, 2012

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