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Regional dependencies in job creation: An efficiency analysis for Western Germany

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  • Fahr, René
  • Sunde, Uwe
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    Abstract

    This paper investigates the efficiency of the matching process between job seekers and vacancy posting firms in West Germany, using variation across labour market regions and across time. The results of a stochastic frontier analysis shed new light on the extent of and regional differences in search frictions, on potential determinants of frictional inefficiencies and on the consequences of German reunification for the matching process. The paper also presents novel evidence on the complex interactions between spatial contingencies among regional labour markets: matching efficiency decreases with spatial autocorrelation in hiring, implying indirect evidence for crowding externalities.

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    Bibliographic Info

    Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20484.

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    Date of creation: 2006
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    Publication status: Published in Applied Economics 10 38(2006): pp. 1193-1206
    Handle: RePEc:lmu:muenar:20484

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    Web page: http://www.vwl.uni-muenchen.de
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    Cited by:
    1. Lottmann, Franziska, 2012. "Spatial dependencies in German matching functions," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 27-41.
    2. Reinhold Kosfeld, 2007. "Regional Spillovers and Spatial Heterogeneity in Matching Workers and Employers in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 227(3), pages 236-253, June.
    3. Altavilla, Carlo & Caroleo, Floro Ernesto, 2009. "Unintended Effects of National-based Active Labour Market Policies," IZA Discussion Papers 4045, Institute for the Study of Labor (IZA).
    4. Carlo Altavilla & Floro Ernesto Caroleo, 2011. "Asymmetric Effects of National-based Active Labour Market Policies," CSEF Working Papers 293, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. Hillmann, Katja, 2009. "Does the Hartz IV Reform have an Effect on Matching Efficiency in Germany? A Stochastic Frontier Approach," MPRA Paper 22295, University Library of Munich, Germany.
    6. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.

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