Backbone of complex networks of corporations: The flow of control

We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which mass or energy is flowing along the links. In particular, the procedure enables us to address important questions in economics, namely, how control and wealth are structured and concentrated across national markets. We report on the first cross-country investigation of ownership networks, focusing on the stock markets of 48 countries around the world. On the one hand, our analysis confirms results expected on the basis of the literature on corporate control, namely, that in Anglo-Saxon countries control tends to be dispersed among numerous shareholders. On the other hand, it also reveals that in the same countries, control is found to be highly concentrated at the global level, namely, lying in the hands of very few important shareholders. Interestingly, the exact opposite is observed for European countries. These results have previously not been reported as they are not observable without the kind of network analysis developed here.Comment: 24 pages, 12 figures, 2nd version (text made more concise and readable, results unchanged

Social network dynamics of face-to-face interactions

The recent availability of data describing social networks is changing our understanding of the "microscopic structure" of a social tie. A social tie indeed is an aggregated outcome of many social interactions such as face-to-face conversations or phone-calls. Analysis of data on face-to-face interactions shows that such events, as many other human activities, are bursty, with very heterogeneous durations. In this paper we present a model for social interactions at short time scales, aimed at describing contexts such as conference venues in which individuals interact in small groups. We present a detailed anayltical and numerical study of the model's dynamical properties, and show that it reproduces important features of empirical data. The model allows for many generalizations toward an increasingly realistic description of social interactions. In particular in this paper we investigate the case where the agents have intrinsic heterogeneities in their social behavior, or where dynamic variations of the local number of individuals are included. Finally we propose this model as a very flexible framework to investigate how dynamical processes unfold in social networks.Comment: 20 pages, 25 figure

Ethnic Concentration, Cultural Identity and Immigrant Self-Employment in Switzerland

Immigrant self-employment rates vary considerably across regions in Switzerland. Business ownership provides an alternative to wage labour, where immigrants have to face structural barriers such as the limited knowledge of the local language, or difficulties in fruitfully making use of their own human capital. Despite their historically high unemployment rates with respect to natives, immigrants in Switzerland are less entrepreneurial. It is therefore important to uncover factors that may facilitate the transition from the status of immigrant to the one of economic agent. Among others factors, concentration in ethnic enclaves, as well as accumulated labour market experience and time elapsed since immigration, have been associated to higher business ownership rates. In this paper, we use a cross-section of 2,490 Swiss municipalities in order to investigate the role played by the ethnic concentration of immigrants, as well as cultural factors, in determining self-employment rates