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The local impact and multiplier effect of universities in Lower Saxony on the labour market

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  • Stöver, Britta

Abstract

This paper quantifies and compares the direct and indirect effects of labour demand generated by each university location in Lower Saxony. The results are classified in order to identify regional patterns. The applied method is based on three components: the importance, the dynamics and the interdependence of the university related labour market in relation to the other economic sectors. The importance of the university locations for their respective local economy and in comparison with each other is assessed by an indicator. The dynamic and change of the importance of the different university locations is shown using a shift-share analysis. Both measures can be applied for a classification and spatial clustering of different types of university locations. Additionally, input-output-based employment multipliers are estimated to display the interaction of the university locations with the local economy. The results can be summarised in the identification of three differing regions. The south-east of Lower Saxony is characterised by big, established, well integrated university locations with low dynamics. Adjacent, smaller university locations have difficulties to emerge of the shadows of the dominant locations. In the western part of Lower Saxony can be found small to big university locations with growing importance and continuous development potential. The university locations in the north east are small to medium sized and rather unimportant for the local as well as the total labour market.

Suggested Citation

  • Stöver, Britta, 2018. "The local impact and multiplier effect of universities in Lower Saxony on the labour market," Hannover Economic Papers (HEP) dp-646, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  • Handle: RePEc:han:dpaper:dp-646
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Siegfried, John J. & Sanderson, Allen R. & McHenry, Peter, 2007. "The economic impact of colleges and universities," Economics of Education Review, Elsevier, vol. 26(5), pages 546-558, October.
    3. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    5. Tobias Kronenberg, 2010. "Erstellung einer Input-Output-Tabelle für Mecklenburg-Vorpommern," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 4(3), pages 223-248, September.
    6. Johannes Többen & Tobias Heinrich Kronenberg, 2015. "Construction Of Multi-Regional Input--Output Tables Using The Charm Method," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 487-507, December.
    7. Kronenberg, Tobias & Többen, Johannes, 2011. "Regional input-output modelling in Germany: The case of North Rhine-Westphalia," MPRA Paper 35494, University Library of Munich, Germany.
    8. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    Regional Input-Output table; employment multiplier; spatial analysis; classification; (in)direct employment effects; universities;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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