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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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  1. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August.
  2. Uwe Blien & Jens Suedekum & Katja Wolf, 2005. "Local Employment Growth in West Germany - A Dynamic Panel Approach," ERSA conference papers ersa05p620, European Regional Science Association.
  3. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  4. Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2004. "The dynamics of local employment in France," Research Unit Working Papers 0402, Laboratoire d'Economie Appliquee, INRA.
  5. Reinhold Grotz & Udo Brixy, 2003. "Regional Patterns and Determinants of the Success of New Firms in Western Germany," ERSA conference papers ersa03p270, European Regional Science Association.
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  12. Pierre-Philippe Combes & Henry G. Overman, 2003. "The spatial distribution of economic activities in the European Union," LSE Research Online Documents on Economics 20023, London School of Economics and Political Science, LSE Library.
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Cited by:
  1. Michaela Fuchs, 2011. "How important are agglomeration effects for plant performance? Empirical evidence for Germany," ERSA conference papers ersa11p912, European Regional Science Association.
  2. Raimund Krumm & Harald Strotmann, 2013. "The impact of regional location factors on job creation, job destruction and employment growth in manufacturing," Jahrbuch für Regionalwissenschaft, Springer, vol. 33(1), pages 23-48, February.
  3. 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].
  4. Jan Kluge & Robert Lehmann, 2013. "Marshall or Jacobs? New insights from an interaction model," Jahrbuch für Regionalwissenschaft, Springer, vol. 33(2), pages 107-133, October.
  5. Robert Lehmann & Jan Kluge, 2012. "Marshall or Jacobs? Answers to an unsuitable question from an interaction model," ERSA conference papers ersa12p373, European Regional Science Association.
  6. 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.

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