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Convergence of the skill composition across German regions

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  • Südekum, Jens

Abstract

There is considerable variation in the skill composition of employment across cities and regions. The way how skill compositions evolve over time sheds light on the strength of concentration forces for high-skilled workers, such as localized increasing returns to human capital. In this paper I report robust evidence that regions with a large initial share of high-skilled workers had higher total employment growth in West Germany (1977-2002), but lower growth of high-skilled jobs. There has been a convergence of local skill compositions over time, on average and even within particular industries. These stylized facts for the German economy contrast available evidence from the US, where researchers have identified a divergence trend. My findings suggest that concentration forces in Germany are not strong enough to trigger a self-reinforcing spatial concentration of high-skilled workers. Some potential reasons for the differences with the US are also discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 38 (2008)
Issue (Month): 2 (March)
Pages: 148-159

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Handle: RePEc:eee:regeco:v:38:y:2008:i:2:p:148-159

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References

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Citations

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Cited by:
  1. Jens Südekum, 2010. "Human Capital Externalities and Growth of High- and Low-Skilled Jobs," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(1), pages 92-114, February.
  2. Bischoff, Oliver, 2012. "Explaining regional variation in equilibrium real estate prices and income," Journal of Housing Economics, Elsevier, vol. 21(1), pages 1-15.
  3. Hartmut Egger & Gabriel J Felbermayr, 2009. "Endogenous Skill Formation and the Source Country Effects of Emigration," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 308/2009, Department of Economics, University of Hohenheim, Germany.
  4. Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2011. "Commuter Effects on Local Labour Markets: A German Modelling Study," Tinbergen Institute Discussion Papers 11-114/3, Tinbergen Institute.
  5. Egger, Hartmut & Felbermayr, Gabriel, 2009. "Endogenous Skill Formation and the Source Country Effects of Skilled Labor Emigration from Developing Countries," Munich Reprints in Economics 20530, University of Munich, Department of Economics.
  6. Michael Fritsch & Michael Wyrwich, 2014. "The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany," Papers in Evolutionary Economic Geography (PEEG) 1411, Utrecht University, Section of Economic Geography, revised Apr 2014.
  7. Florian Noseleit, 2011. "Entrepreneurship, structural change, and economic growth," Papers in Evolutionary Economic Geography (PEEG) 1104, Utrecht University, Section of Economic Geography, revised Jan 2011.
  8. Jan Wedemeier, 2011. "Creative professionals and high-skilled agents': Polarization of employment growth?," ERSA conference papers ersa11p489, European Regional Science Association.
  9. Michael Fritsch & Alexandra Schroeter, 2007. "Why Does the Effect of New Business Formation Differ Across Regions?," Jena Economic Research Papers 2007-077, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  10. Dauth, Wolfgang & Suedekum, Jens, 2014. "Globalization and local profiles of economic growth and industrial change," DICE Discussion Papers 142, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  11. Dauth, Wolfgang & Suedekum, Jens, 2014. "Globalization and Local Profiles of Economic Growth and Industrial Change," IZA Discussion Papers 8161, Institute for the Study of Labor (IZA).
  12. Schlitte, Friso, 2010. "Local human capital, segregation by skill, and skill-specific employment growth," HWWI Research Papers 1-32, Hamburg Institute of International Economics (HWWI).

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