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What has caused regional employment growth differences in Eastern Germany?

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  • Jens Suedekum

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  • Uwe Blien

    ()

  • Johannes Ludsteck

    ()

Abstract

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

Suggested Citation

  • Jens Suedekum & Uwe Blien & Johannes Ludsteck, 2006. "What has caused regional employment growth differences in Eastern Germany?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(1), pages 51-73, March.
  • Handle: RePEc:spr:jahrfr:v:26:y:2006:i:1:p:51-73
    DOI: 10.1007/s10037-005-0077-2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Annekatrin Niebuhr & Nadia Granato & Anette Haas & Silke Hamann, 2012. "Does Labour Mobility Reduce Disparities between Regional Labour Markets in Germany?," Regional Studies, Taylor & Francis Journals, vol. 46(7), pages 841-858, September.
    2. Matthias Firgo & Oliver Fritz, 2017. "Does having the right visitor mix do the job? Applying an econometric shift-share model to regional tourism developments," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 469-490, May.
    3. Friso Schlitte, 2012. "Local human capital, segregation by skill, and skill‐specific employment growth," Papers in Regional Science, Wiley Blackwell, vol. 91(1), pages 85-106, March.
    4. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.

    More about this item

    Keywords

    Employment Growth; Eastern Germany; Shift-Share-Analysis; Regional Disparities; J23; E2;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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