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More People, More Jobs: Urban Renaissance in Germany


  • Kurt Geppert
  • Martin Gornig


Germany's big cities are gaining in attractiveness both as a place for living and as a location for companies. Even as Germany's total population is declining, the population of cities increased by nearly 3 percent between 1999 and 2008. The same is true for spatial shifts in the economy: During the past 10 years employment in big cities increased by nearly 4 percent while stagnating in Germany as a whole. Demographic and economic trends towards cities influence each other. On the one hand young skilled people are accepting job offers in the cities. On the other hand companies are now taking the preferences of highly skilled employees into account when choosing a location because know-how is scarce. The big cities' new attractiveness is especially appealing to young people with an above-average income. Their main problem is to reconcile their career desires with their wish for a family. Cities are more able to profit from the new trend in people's choice of residence if they create better conditions for children. At the same time, good urban planning can help mitigate the social conflicts and expulsion effects that result from gentrification in the city centers.

Suggested Citation

  • Kurt Geppert & Martin Gornig, 2010. "More People, More Jobs: Urban Renaissance in Germany," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(22), pages 173-181.
  • Handle: RePEc:diw:diwwrp:wr6-22

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    Cited by:

    1. Cullmann, Astrid & Geppert, Kurt, 2012. "Socio-Economic Trends and New Territorial Dynamics in the European Union : Convergence and Agglomeration," EconStor Preprints 128596, ZBW - German National Library of Economics.

    More about this item


    Knowledge-intensive services; Urban renaissance; Population growth;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • L8 - Industrial Organization - - Industry Studies: Services
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location


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