Interconnected Track and Tech: The Impact of Multiplex Transport and Technology Networks on Labor Market Integration in the Yangtze River Delta, China

Abstract

Despite growing scholarly attention to the role of urban networks in explaining regional integration dynamics, a more explicit focus on the multiplexity of infrastructure- and knowledge-based networks is required for understanding the nuanced ways in which cities regionally integrate. Applying a panel model to data for the Yangtze River Delta for the period 2014-2021, we juxtapose the impacts of transport and technology connections on labor market integration. To this end, we abstract both types of connections into a two-layer network and explore their (potential) interplays. Our analysis reveals that while transport networks show a positive correlation with labor market integration, technology networks demonstrate a complex U-shaped effect. We also find evidence for nuanced interactions in the multiplex network: 1) cities’ connectivity in both networks leads to a U-shaped effect on labor market integration due to the dominant role of technology connections; 2) cities’ interdependencies within the two-layer network lead to synergy effects, specifically manifested as increased integration of labor markets. We reflect on the broader implications of our findings for regional development strategies and discuss possible avenues for future research.