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Local Employment Growth in West Germany: A Dynamic Panel Approach

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Author Info
Uwe Blien () (Institute for Employment Research (IAB) and IZA Bonn)
Jens Suedekum (University of Konstanz and IZA Bonn)
Katja Wolf (Institute for Employment Research (IAB))

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Abstract

In this paper we study the dynamics of local employment growth in West Germany from 1980 to 2001. Using dynamic panel techniques, we analyse the timing of the impact of diversity and specialisation, as well as of the human capital structure of local industries. Diversity has a positive effect on employment growth in the short run, which is stronger in manufacturing than in services. Concerning specialization we find evidence for mean reversion, which is inconsistent with the idea that growth emphasizes itself. But there is considerable inertia in this process. A positive effect of education is only found in manufacturing. Additionally, we look at the impact of firm size and regional wages on local employment growth.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1723.

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Length: 20 pages
Date of creation: Jul 2005
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Handle: RePEc:iza:izadps:dp1723

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Related research
Keywords: regional labour markets externalities local employment growth dynamic panel estimation urbanization and localisation effects

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Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Brülhart, Marius & Mathys, Nicole Andréa, 2007. "Sectoral Agglomeration Economies in a Panel of European Regions," CEPR Discussion Papers 6410, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Longhi, Simonetta & Nijkamp, Peter, 2006. "Forecasting regional labor market developments under spatial heterogeneity and spatial correlation," Serie Research Memoranda 0015, Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
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