What can the labor flow of 500 million people on LinkedIn tell us about the structure of the global economy?

Curated on Posted on by Stefaan Verhulst

Paper by Jaehyuk Park et al: “…One of the most popular concepts for policy makers and business economists to understand the structure of the global economy is “cluster”, the geographical agglomeration of interconnected firms such as Silicon Valley, Wall Street, and Hollywood. By studying those well-known clusters, we become to understand the advantage of participating in a geo-industrial cluster for firms and how it is related to the economic growth of a region. 

However, the existing definition of geo-industrial cluster is not systematic enough to reveal the whole picture of the global economy. Often, after defining as a group of firms in a certain area, the geo-industrial clusters are considered as independent to each other. As we should consider the interaction between accounting team and marketing team to understand the organizational structure of a firm, the relationships among those geo-industrial clusters are the essential part of the whole picture….

In this new study, my colleagues and I at Indiana University — with support from LinkedIn — have finally overcome these limitations by defining geo-industrial clusters through labor flow and constructing a global labor flow network from LinkedIn’s individual-level job history dataset. Our access to this data was made possible by our selection as one of 11 teams selected to participate in the LinkedIn Economic Graph Challenge.

The transitioning of workers between jobs and firms — also known as labor flow — is considered central in driving firms towards geo-industrial clusters due to knowledge spillover and labor market pooling. In response, we mapped the cluster structure of the world economy based on labor mobility between firms during the last 25 years, constructing a “labor flow network.” 

To do this, we leverage LinkedIn’s data on professional demographics and employment histories from more than 500 million people between 1990 and 2015. The network, which captures approximately 130 million job transitions between more than 4 million firms, is the first-ever flow network of global labor.

The resulting “map” allows us to:

  • identify geo-industrial clusters systematically and organically using network community detection
  • verify the importance of region and industry in labor mobility
  • compare the relative importance between the two constraints in different hierarchical levels, and
  • reveal the practical advantage of the geo-industrial cluster as a unit of future economic analyses.
  • show a better picture of what industry in what region leads the economic growth of the industry or the region, at the same time
  • find out emerging and declining skills based on the representativeness of them in growing and declining geo-industrial clusters…(More)”.

Review into bias in algorithmic decision-making

Curated on Posted on by Stefaan Verhulst

Interim Report by the Centre for Data Ethics and Innovation (UK): The use of algorithms has the potential to improve the quality of decision- making by increasing the speed and accuracy with which decisions are made. If designed well, they can reduce human bias in decision-making processes. However, as the volume and variety of data used to inform decisions increases, and the algorithms used to interpret the data become more complex, concerns are growing that without proper oversight, algorithms risk entrenching and potentially worsening bias.

The way in which decisions are made, the potential biases which they are subject to and the impact these decisions have on individuals are highly context dependent. Our Review focuses on exploring bias in four key sectors: policing, financial services, recruitment and local government. These have been selected because they all involve significant decisions being made about individuals, there is evidence of the growing uptake of machine learning algorithms in the sectors and there is evidence of historic bias in decision-making within these sectors. This Review seeks to answer three sets of questions:

  1. Data: Do organisations and regulators have access to the data they require to adequately identify and mitigate bias?
  2. Tools and techniques: What statistical and technical solutions are available now or will be required in future to identify and mitigate bias and which represent best practice?
  3. Governance: Who should be responsible for governing, auditing and assuring these algorithmic decision-making systems?

Our work to date has led to some emerging insights that respond to these three sets of questions and will guide our subsequent work….(More)”.

The 100 Questions Initiative: Sourcing 100 questions on key societal challenges that can be answered by data insights

Curated on Posted on by Stefaan Verhulst
100Q Screenshot

Press Release: “The Governance Lab at the NYU Tandon School of Engineering announced the launch of the 100 Questions Initiative — an effort to identify the most important societal questions whose answers can be found in data and data science if the power of data collaboratives is harnessed.

The initiative, launched with initial support from Schmidt Futures, seeks to address challenges on numerous topics, including migration, climate change, poverty, and the future of work.

For each of these areas and more, the initiative will seek to identify questions that could help unlock the potential of data and data science with the broader goal of fostering positive social, environmental, and economic transformation. These questions will be sourced by leveraging “bilinguals” — practitioners across disciplines from all over the world who possess both domain knowledge and data science expertise.

The 100 Questions Initiative starts by identifying 10 key questions related to migration. These include questions related to the geographies of migration, migrant well-being, enforcement and security, and the vulnerabilities of displaced people. This inaugural effort involves partnerships with the International Organization for Migration (IOM) and the European Commission, both of which will provide subject-matter expertise and facilitation support within the framework of the Big Data for Migration Alliance (BD4M).

“While there have been tremendous efforts to gather and analyze data relevant to many of the world’s most pressing challenges, as a society, we have not taken the time to ensure we’re asking the right questions to unlock the true potential of data to help address these challenges,” said Stefaan Verhulst, co-founder and chief research and development officer of The GovLab. “Unlike other efforts focused on data supply or data science expertise, this project seeks to radically improve the set of questions that, if answered, could transform the way we solve 21st century problems.”

In addition to identifying key questions, the 100 Questions Initiative will also focus on creating new data collaboratives. Data collaboratives are an emerging form of public-private partnership that help unlock the public interest value of previously siloed data. The GovLab has conducted significant research in the value of data collaboration, identifying that inter-sectoral collaboration can both increase access to information (e.g., the vast stores of data held by private companies) as well as unleash the potential of that information to serve the public good….(More)”.

Platforms that trigger innovation

Curated on Posted on by Stefaan Verhulst

Report by the Caixa Foundation: “…The Work4Progress programme thus supports the creation of “Open Innovation Platforms for the creation of employment in Peru, India and Mozambique” by means of collaborative partnerships between local civil society organisations, private sector, administration, universities and Spanish NGOs.

The main innovation of this programme is the incorporation of new tools and methodologies in: (1) listening and identification of community needs, (2) the co-creation and prototyping of new solutions, (3) the exploration of instruments for scaling, (4) governance, (5) evolving evaluation systems and (6) financing strategies. The goal of all of the above is to try to incorporate innovation strategies comprehensively in all components.

Work4Progress has been designed with a Think-and-Do-Tank mentality. The
member organisations of the platforms are experimenting in the field, while a group of international experts helps us to obtain this knowledge and share it with centres of thought and action at international level. In fact, this is the objective of this publication: to share the theoretical framework of the programme, to connect these ideas with concrete examples and to continue to strengthen the meeting point between social innovation and development cooperation.

Work4Progress is offered as a ‘living lab’ to test new methodologies that may be useful for other philanthropic institutions, governments or entities specialising in international development….(More)”.

New platforms for public imagination

Curated on Posted on by Stefaan Verhulst

Kathy Peach at NESTA: “….The practice of thinking about the future is currently dominated by a small group of academics, consultants, government foresight teams, and large organisations. The ability to influence the future has been cornered by powerful special interests and new tech monopolies who shape our views of what is possible. While the entrepreneurs, scientists and tech developers building the future are not much more diverse. Overall, the future is dominated by privileged white men.

Democratising futures means creating new capacity among many more diverse people to explore and articulate their alternative and desirable visions of the future. It must create hope – enabling people to co-diagnose the issues and opportunities, build common ground and collectively imagine preferred futures. Investment, policy and collective civic action should then be aligned to help deliver these common visions. This is anticipatory democracy, not the extractive surveying of needs and wants against a narrow prescribed set of options that characterises many ‘public engagement’ exercises. Too often these are little more than PR activities conducted relatively late in the decision-making process.

Participatory futures

The participation of citizens in futures exercises is not new. From Hawaii in the 1970s to Newcastle more recently, cities, regions and small nations have at times explored these methods as a way of deepening civic engagement. But this approach has so far failed to achieve mainstream adoption.

The zeitgeist, however, may be changing. Political paralysis has led to growing calls for citizens assemblies on climate change and resolving the Brexit deadlock – demonstrating increasing enthusiasm for involving citizens in complex deliberations. The appointment of the world’s first Commissioner for Future Generations in Wales and its People’s Platform, as well as the establishment of the UK’s all-party parliamentary group on future generations are also signals of democracies grappling to find ways of bringing long-term thinking and people back into political decision-making.

And while interest in mini-publics such as citizens’ assemblies has grown, there has been a much broader expansion of participatory methods for thinking about the future….

Anecdotal evidence from participatory futures exercises suggests they can lead to significantchange for communities. But rigorous or longitudinal evaluations of these approaches are relatively few, so the evidence base is sketchy. The reasons for this are not clear. Perhaps it is the eclecticism of the field, the lack of clarity on how to evaluate these methods, or the belief of its supporters that the impact is self-evidentiary.

As part of our new research agenda into participatory futures, we want to address this challenge. We hope to identify how newer and more traditional futures methods can practically be combined to greatest effect. We want to understand the impact on the individuals and groups involved, as well as on the wider community. We want to know whether platforms for public imagination can help nurture more of the things we need: more inclusive economies and innovation, healthier community relationships, greater personal agency for individuals, and more effective civic society.

We know many local authorities, public and civil society institutions are recognising the need to reimagine their roles and their services, and recast their relationships with citizens for our changing world….(More)”.

The future of work? Work of the future!

Curated on Posted on by Stefaan Verhulst

European Commission: “While historical evidence suggests that previous waves of automation have been overwhelmingly positive for the economy and society, AI is in a different league, with the potential to be much more disruptive. It builds upon other digital technologies but also brings about and amplifies major socioeconomic changes of its own.

What do recent technological developments in AI and robotisation mean for the economy, businesses and jobs? Should we be worried or excited? Which jobs will be destroyed and which new ones created? What should education systems, businesses, governments and social partners do to manage the coming transition successfully?
These are some of the questions considered by Michel Servoz, Senior Adviser on Artificial Intelligence, Robotics and the Future of Labour, in this in-depth study requested by European Commission President Jean-Claude Juncker….(More)”.

Digital inequalities in the age of artificial intelligence and big data

Curated on Posted on by Stefaan Verhulst

Paper by Christoph Lutz: “In this literature review, I summarize key concepts and findings from the rich academic literature on digital inequalities. I propose that digital inequalities research should look more into labor‐ and big data‐related questions such as inequalities in online labor markets and the negative effects of algorithmic decision‐making for vulnerable population groups.

The article engages with the sociological literature on digital inequalities and explains the general approach to digital inequalities, based on the distinction of first‐, second‐, and third‐level digital divides. First, inequalities in access to digital technologies are discussed. This discussion is extended to emerging technologies, including the Internet‐of‐things and artificial intelligence‐powered systems such as smart speakers. Second, inequalities in digital skills and technology use are reviewed and connected to the discourse on new forms of work such as the sharing economy or gig economy. Third and finally, the discourse on the outcomes, in the form of benefits or harms, from digital technology use is taken up.

Here, I propose to integrate the digital inequalities literature more strongly with critical algorithm studies and recent discussions about datafication, digital footprints, and information privacy….(More)”.

The Wrong Kind of AI? Artificial Intelligence and the Future of Labor Demand

Curated on Posted on by Stefaan Verhulst

NBER Paper by Daron Acemoglu and Pascual Restrepo: “Artificial Intelligence is set to influence every aspect of our lives, not least the way production is organized. AI, as a technology platform, can automate tasks previously performed by labor or create new tasks and activities in which humans can be productively employed. Recent technological change has been biased towards automation, with insufficient focus on creating new tasks where labor can be productively employed. The consequences of this choice have been stagnating labor demand, declining labor share in national income, rising inequality and lower productivity growth. The current tendency is to develop AI in the direction of further automation, but this might mean missing out on the promise of the “right” kind of AI with better economic and social outcomes….(More)”.

Platform Surveillance

Curated on Posted on by Stefaan Verhulst

Editorial by David Murakami Wood and Torin Monahan of Special Issue of Surveillance and Society: “This editorial introduces this special responsive issue on “platform surveillance.” We develop the term platform surveillance to account for the manifold and often insidious ways that digital platforms fundamentally transform social practices and relations, recasting them as surveillant exchanges whose coordination must be technologically mediated and therefore made exploitable as data. In the process, digital platforms become dominant social structures in their own right, subordinating other institutions, conjuring or sedimenting social divisions and inequalities, and setting the terms upon which individuals, organizations, and governments interact.

Emergent forms of platform capitalism portend new governmentalities, as they gradually draw existing institutions into alignment or harmonization with the logics of platform surveillance while also engendering subjectivities (e.g., the gig-economy worker) that support those logics. Because surveillance is essential to the operations of digital platforms, because it structures the forms of governance and capital that emerge, the field of surveillance studies is uniquely positioned to investigate and theorize these phenomena….(More)”.

Imagination unleashed: Democratising the knowledge economy

Curated on Posted on by Stefaan Verhulst

Report by Roberto Mangabeira Unger, Isaac Stanley, Madeleine Gabriel, and Geoff Mulgan: “If economic eras are defined by their most advanced form of production, then we live in a knowledge economy – one where knowledge plays a decisive role in the organisation of production, distribution and consumption.

The era of Fordist mass production that preceded it transformed almost every part of the economy. But the knowledge economy hasn’t spread in the same way. Only some people and places are reaping the benefits.

This is a big problem: it contributes to inequality, stagnation and political alienation. And traditional policy solutions are not sufficient to tackle it. We can’t expect benefits simply to trickle down to the rest of the population, and redistribution alone will not solve the inequalities we are facing.

What’s the alternative? Nesta has been working with Roberto Mangabeira Unger to convene discussions with politicians, researchers, and activists from member countries of the Organisation for Economic Co-operation and Development, to explore policy options for an inclusive knowledge economy. This report presents the results of that collaboration.

We argue that an inclusive knowledge economy requires action to democratise the economy – widening access to capital and productive opportunity, transforming models of ownership, addressing new concentrations of power, and democratising the direction of innovation.

It demands that we establish a social inheritance by reforming education and social security.

And it requires us to create a high-energy democracy, promoting experimental government, and independent and empowered civil society.

Recommendations

This is a broad ranging agenda. In practice, it focuses on:

  • SMEs and their capacity and skills – greatly accelerating the adoption of new methods and technologies at every level of the economy, including new clean technologies that reduce carbon emissions
  • Transforming industrial policy to cope with the new concentrations of power and to prevent monopoly and predatory behaviours
  • Transforming and disaggregating property rights so that more people can have a stake in productive resources
  • Reforming education to prepare the next generation for the labour market of the future not the past – cultivating the mindsets, skills and cultures relevant to future jobs
  • Reforming social policy to respond to new patterns of work and need – creating more flexible systems that can cope with rapid change in jobs and skills, with a greater emphasis on reskilling
  • Reforming government and democracy to achieve new levels of participation, agility, experimentation and effectiveness…(More)”