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Creative professionals and high-skilled agents: Polarization of employment growth?

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  • Wedemeier, Jan

Abstract

The creative sector is frequently regarded as one of the driving forces of total employment growth. Empirical studies suggest that the clustering of human capital might result in the polarization of employment growth. Since the creative sector's definition is motivated from the insights of the economics of human capital, this effect might also be relevant to the creative sector. Following these ideas, the objective of the present paper is to analyze the impact of the creative sector on total employment and on creative sector's employment growth in Western Germany's regions from 1977 to 2004. For the analysis, the definitions of the creative sector follow a technologically and culturally oriented definition and, alternatively, Florida's creative class (2002). These approaches focusing on human capital are contrasted with a skill-based approach. Using a fixed-effects panel model with time lags, I find evidence that the creative sector fosters the regional growth rate of total employment. The results show, moreover, that an initially large share of regional creative professionals pushes further the regional concentration of those professions in agglomerated regions. Driving force for the concentration of creative professionals are local amenities, measured by bohemians, and it is assumed that knowledge spillovers - possibly accelerated by the diversified composition of employment - contribute to this polarization. These results are as well confirmed for the high-skilled agents. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 119.

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Date of creation: 2012
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Handle: RePEc:zbw:hwwirp:119

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Keywords: regional employment growth; creative sector; human capital; bohemians; externalities;

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Cited by:
  1. Hohenleitner, Ingrid & Hillmann, Katja, 2012. "Impact of Benefit Sanctions on Unemployment Outflow - Evidence from German Survey Data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 66055, Verein für Socialpolitik / German Economic Association.
  2. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.
  3. Vöpel, Henning, 2013. "A Zidane clustering theorem: Why top players tend to play in one team and how the competitive balance can be restored," HWWI Research Papers 141, Hamburg Institute of International Economics (HWWI).

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