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The determinants of local employment dynamics in Western Germany

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  • Fuchs, Michaela

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"This paper studies the impact of the local industrial structure on employment dynamics in Western Germany. Following an approach of Combes/Magnac/Robin (2004) for France, local employment growth is decomposed into internal growth resulting from employment changes in existing plants and into external growth determined by employment decisions of newly established plants. The dynamics of both components are estimated simultaneously, taking explicitly into account the timing of the impact of specialization, diversity, and competition in a region. The analysis is conducted for 24 sectors in the West German labor market regions from 1993 to 2002. Estimation results emphasize the positive influence of diversity on both internal and external employment growth, whereas there is no clear result on specialization. A high degree of competition fosters external employment, but is detrimental to internal employment. Dynamic panel regressions show that static externalities dominate. Importantly, the impact of the local industrial structure on employment dynamics does not differ between small and larger plants, nor are there fundamental differences between Western Germany and France." (Author's abstract, IAB-Doku) ((en))

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Bibliographic Info

Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200918.

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Length: 34 pages
Date of creation: 14 Aug 2009
Date of revision:
Publication status: published in: Empirical Economics, Vol. 40, No. 1 (2011), p. 177-203
Handle: RePEc:iab:iabdpa:200918

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Keywords: Beschäftigungsentwicklung - Determinanten; regionale Verteilung; Wirtschaftsstruktur; Wettbewerbsbedingungen; IAB-Betriebs-Historik-Panel; Betriebsgröße; Westdeutschland; Frankreich; Bundesrepublik Deutschland;

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References

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Cited by:
  1. Jan Kluge & Robert Lehmann, 2012. "Marshall or Jacobs? Answers to an unsuitable question from an interaction model," Ifo Working Paper Series ifo Working Paper No. 124, Ifo Institute for Economic Research at the University of Munich.
  2. Michaela Fuchs, 2011. "How important are agglomeration effects for plant performance? Empirical evidence for Germany," ERSA conference papers ersa11p912, European Regional Science Association.
  3. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
  4. Dauth, Wolfgang, 2010. "The mysteries of the trade: employment effects of urban interindustry spillovers," IAB Discussion Paper 201015, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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