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Agglomeration of knowledge: A regional economic analysis for the German economy

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  • Krenz, Astrid

Abstract

We investigate the effects of job-specific knowledge for individual labor earnings of workers in the German economy. The results indicate a positive effect for earnings stemming in particular from high-knowledge in the areas of sales and marketing, computers and electronics, mathematics, biology and law and government. Investigating the geographical concentration of employment reveals, for example, that workers with highknowledge in the field of communication and media are concentrated in just a few places whereas workers with high-knowledge in law and government and administration and management are far more dispersed over the regions. These patterns of geographical localization of employment give evidence for differences in the dissemination of knowledge across peers and customers.

Suggested Citation

  • Krenz, Astrid, 2014. "Agglomeration of knowledge: A regional economic analysis for the German economy," University of Göttingen Working Papers in Economics 206, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:206
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    More about this item

    Keywords

    agglomeration; knowledge; growth; German regional planning units; wages; Heckman selection; Krugman index;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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