Unraveling the Network of the Extractive Industries

This paper analyzes extractive industries in Colombia and their connections to other economic activities in the country. We use detailed social security data on all formal employees to create an industry-relatedness measure using labor flows between industries. Drawing on the vast network analysis literature, we exploit centrality measures to reveal the importance of the extractive sector among Colombian industries. Our results show that extractive industries are well connected within the Colombian industrial network, and that they are central overall and within their clusters. We also find that extractive industries have stronger linkages with manufacturing and agriculture than with other sectors. Finally, a higher relatedness to extractive activities is correlated with lower levels of employment, specially of female workers.