Employment Distribution
How to read?
You’re looking at opportunities for
Industry development in Albania
Each house represents
an industry:
Each block represents
a software task:
The current analysis view displays the Industry Space:
They are placed closer when they are more related—that is, when workers move between them more frequently.
Glossary
Revealed Comparative Advantage (RCA) measures how concentrated an activity a is in a local economy l compared to a benchmark economy, b. It is defined as:
An RCA greater than 1 indicates that the activity is more prominent locally than in the benchmark, suggesting a local specialization.
Relatedness captures how similar two economic activities are, or how much synergy exists between them, following the approach of Neffke et al., (2017).
In the industry space, relatedness is based on inter-industry labor flows. Industries are connected when workers move between them more frequently than would be expected if job changes occurred randomly.
In the software task space, relatedness is based on the co-occurrence of tasks in programmers’ task profiles. Two tasks are linked when they appear together more often than would be expected if task choices were random.
Higher relatedness indicates that two activities draw on similar skills or capabilities.
Density measures how well a given activity “fits” within a local economy. It is calculated as the share of activities in the location with RCA > 1, weighted by their relatedness to the focal activity.
A higher density means the local economy already has many related activities, increasing the likelihood that it can develop the focal one.
Benchmarks
Europe (high income): Denmark, the Netherlands and Switzerland. Europe (East): Croatia, Czech Republic, Estonia, Hungary, Lithuania, Slovenia. Europe: Europe (high income) + Europe (East) + Malta + Portugal + Spain.
Benchmark: global software sector.
Activity classification
Industries are classified using the 2-digit level of the European NACE 2.0 system.
Software tasks and broader task categories are defined in Feng et al. (2025).
SWOT categories are mapped from RCA and density values, with reference points at RCA = 1 and density = 1.
- Strength. The activity is both large and well aligned with the local capability base.
- Weakness. The activity is small and poorly aligned with local capabilities.
- Opportunity. The activity fits the local economy well but is smaller than expected given that fit. These may indicate untapped potential or bottlenecks that have prevented the activity from scaling.
- Threat. The activity is larger than expected given its weak fit with local capabilities. This may signal underlying vulnerabilities or strengths that have remained underleveraged.
- Entry opportunities. These are activities that are completely absent from the location. The vertical axis shows how well these non-existing activities would fit the local economy compared to how well they would fit in the benchmark region.
Note: Opportunities and threats represent anomalies—activities that deviate from what we would expect based on the rest of the local economy. Examining these deviations more closely may help identify binding constraints or underused assets that matter for future development.
