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The Creative Class, Bohemians and Local Labor Market Performance: A Micro-data Panel Study for Germany 1975–2004

  • Möller Joachim

    ()

    (Institute for Employment Research (IAB), IZA and University of Regensburg, Universitätsstraße 31, 93053 Regensburg, Germany)

  • Tubadji Annie

    ()

    (Institute for Employment Research (IAB), Regensburger Straße 104, 90478 Nürnberg, Germany)

The paper aims at testing Florida’s concept of the Creative Class using panel data for 323West German regions for the time period 1975-2004. Applying a dynamic system approach based on GMM, we find that the local concentration of the Creative Class has predictive power for the economic development of a region and tends to outperform traditional indicators of human capital. However, our results do not support Florida’s assertion that the creative workers flock where the Bohemians are. According to our findings, the Creative Class is attracted by favorable economic conditions as indicated by employment growth or an increasing wage bill.

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Article provided by De Gruyter in its journal Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik).

Volume (Year): 229 (2009)
Issue (Month): 2-3 (April)
Pages: 270-291

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Handle: RePEc:jns:jbstat:v:229:y:2009:i:2-3:p:270-291
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