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What has caused regional employment growth differences in Eastern Germany?

Listed author(s):
  • Jens Suedekum

    ()

  • Uwe Blien

    ()

  • Johannes Ludsteck

    ()

Using a regression analogue of the shift-share technique we address the explanatory power of various theories about regional differences in employment growth in eastern German districts from 1993 until 2001. We find that overly high regional wages are more important than differences in the qualification, firm-size or industrial structures. The most important source of disparities, however, is the dispersion of idiosyncratic location effects. This suggests that individual districts differ markedly in their capacity to generate employment growth and illustrates the importance of a regional perspective when it comes to the employment problem in eastern Germany in general. Copyright Springer-Verlag 2006

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File URL: http://hdl.handle.net/10.1007/s10037-005-0077-2
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Article provided by Springer & Gesellschaft für Regionalforschung (GfR) in its journal Jahrbuch für Regionalwissenschaft.

Volume (Year): 26 (2006)
Issue (Month): 1 (March)
Pages: 51-73

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Handle: RePEc:spr:jahrfr:v:26:y:2006:i:1:p:51-73
DOI: 10.1007/s10037-005-0077-2
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  1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
  2. Uwe Blien & Katja Wolf, 2002. "Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 391-414.
  3. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919, December.
  4. Takatoshi Tabuchi, 2001. "On Interregional Price Differentials," The Japanese Economic Review, Japanese Economic Association, vol. 52(1), pages 104-115.
  5. Baltagi, Badi H. & Blien, Uwe & Wolf, Katja, 2000. "The East German wage curve 1993-1998," Economics Letters, Elsevier, vol. 69(1), pages 25-31, October.
  6. Greene, William H & Seaks, Terry G, 1991. "The Restricted Least Squares Estimator: A Pedagogical Note," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 563-567, August.
  7. J¸rgen Jerger & Jochen Michaelis, 2003. "Wage Hikes as Supply and Demand Shock," Metroeconomica, Wiley Blackwell, vol. 54(4), pages 434-457, November.
  8. Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
  9. Buck, T W & Atkins, M H, 1976. "The Impact of British Regional Policies on Employment Growth," Oxford Economic Papers, Oxford University Press, vol. 28(1), pages 118-132, March.
  10. Blanchflower, David G & Oswald, Andrew J, 1994. "Estimating a Wage Curve for Britain: 1973-90," Economic Journal, Royal Economic Society, vol. 104(426), pages 1025-1043, September.
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