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

  • Joachim Möller


    (IAB, IZA, University of Regensburg)

  • Annie Tubadji


    (IAB Nürnberg)

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 Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 229 (2009)
Issue (Month): 2-3 (June)
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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  1. Blien, Uwe & Suedekum, Jens & Wolf, Katja, 2006. "Local employment growth in West Germany: A dynamic panel approach," Labour Economics, Elsevier, vol. 13(4), pages 445-458, August.
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  9. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters, in: Regional Climate Change and Variability, chapter 1 Edward Elgar.
  10. David Mcgranahan & Timothy Wojan, 2007. "Recasting the Creative Class to Examine Growth Processes in Rural and Urban Counties," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 197-216.
  11. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," Working Papers 2004.34, Fondazione Eni Enrico Mattei.
  12. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
  13. Nathan, Max, 2007. "The Wrong Stuff? Creative Class Theory and Economic Performance in UK Cities," MPRA Paper 29486, University Library of Munich, Germany.
  14. James Heilbrun, 1996. "Growth, accessibility and the distribution of arts activity in the United States: 1980 to 1990," Journal of Cultural Economics, Springer, vol. 20(4), pages 283-296, December.
  15. Mellander, Charlotta & Florida, Richard, 2007. "The Creative Class or Human Capital? - explaining regional development in Sweden," Working Paper Series in Economics and Institutions of Innovation 79, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
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  17. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
  18. Ann Markusen, 2006. "Urban development and the politics of a creative class: evidence from a study of artists," Environment and Planning A, Pion Ltd, London, vol. 38(10), pages 1921-1940, October.
  19. Fritsch, Michael & Stützer, Michael, 2008. "The Geography of Creative People in Germany," MPRA Paper 21965, University Library of Munich, Germany.
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  27. Richard Florida, 2002. "Bohemia and economic geography," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 55-71, January.
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