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Employment Growth through Labor Flow Networks

Figure 4

Communities of firms.

Panels A and B provide a visual example of clusters in a reduced version of the LFN. The nodes represent industrial/geographical sectors as defined by the three-digit classifications from Statistics Finland. In panel B we provide information about the population of the eight largest cities in the country in order to illustrate the high concentration in southern districts. For both panel A and B, the color gradient corresponds to two-digit classifications. Their networks are laid out by the Force Atlas algorithm, which groups nodes according the strength of their ties. Panels C and D show the density matrices of the detected communities and the predefined industrial/geographical sectors. Each column has been normalized to illustrate the diversity of sectors in each community as a heat map. Cells represent the share of firms that each industry/region has in its respective community. The normalized total number of firms in each community is plotted on top of the heat maps. An inverted series of the Herfindahl–Hirschman index is plotted in charts bellow the heat maps.

Figure 4