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Three-Step Method for Delineating Functional Labour Market Regions

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  • Per Kropp
  • Barbara Schwengler

Abstract

K ropp P. and S chwengler B. Three-step method for delineating functional labour market regions, Regional Studies . This paper proposes a new three-step method to find delineations that adequately define functional regions with strong interactions within the region and few connections with outside areas based on commuting flows. A graph-theoretical approach is used to create many meaningful delineations for labour market regions in Germany and the modularity concept from network analysis is employed to select the delineation that captures the commuting flows best. As a result, a delineation of 50 German labour market regions that are quite heterogeneous in terms of size is obtained. Using the modularity measure, the current delineation is compared with previous functional delineations.

Suggested Citation

  • Per Kropp & Barbara Schwengler, 2016. "Three-Step Method for Delineating Functional Labour Market Regions," Regional Studies, Taylor & Francis Journals, vol. 50(3), pages 429-445, March.
  • Handle: RePEc:taf:regstd:v:50:y:2016:i:3:p:429-445
    DOI: 10.1080/00343404.2014.923093
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    References listed on IDEAS

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    Cited by:

    1. Christopher S. Fowler & Nathan Frey & David C. Folch & Nicholas Nagle & Seth Spielman, 2018. "Who are the people in my neighborhood? The ‘contextual fallacy’ of measuring individual context with census geographies," Working Papers 18-11, Center for Economic Studies, U.S. Census Bureau.
    2. Mergele, Lukas & Weber, Michael, 2020. "Public employment services under decentralization: Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 182(C).
    3. Kosfeld, Reinhold & Dreger, Christian, 2019. "Towards an East German wage curve - NUTS boundaries, labour market regions and unemployment spillovers," Regional Science and Urban Economics, Elsevier, vol. 76(C), pages 115-124.
    4. Zika, Gerd & Schneemann, Christian & Hummel, Markus & Maier, Tobias & Kalinowski, Michael & Bernardt, Florian & Mönnig, Anke & Parton, Frederik & Sonnenburg, Anja & Ulrich, Philip & Wolter, Marc Ingo, "undated". "Langfristige Folgen von Demografie und Strukturwandel für regionale Arbeitsmärkte : Daten, Methoden und Ergebnisse der 5. Welle der BIBB-IAB-Qualifikations- und Berufsprojektionen," IAB-Forschungsbericht 202001, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Breidenbach, Philipp & Budde, Rüdiger & Eilers, Lea & Kaeding, Matthias & Schaffner, Sandra, 2018. "Überprüfung des Zuschnitts von Arbeitsmarktregionen für die Neuabgrenzung des GRW-Fördergebiets ab 2021. Endbericht: Studie im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 181939.
    6. Bossler, Mario & Schank, Thorsten, 2020. "Wage Inequality in Germany after the Minimum Wage Introduction," IZA Discussion Papers 13003, Institute of Labor Economics (IZA).
    7. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.
    8. Christian Hutter & Enzo Weber, 2017. "Mismatch and the Forecasting Performance of Matching Functions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(1), pages 101-123, February.
    9. Jing Chen, 2017. "Geographical Scale, Industrial Diversity and Regional Economic Stability," Working Papers Working Paper 2017-03, Regional Research Institute, West Virginia University.

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