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Long-run processes of geographical concentration and dispersion : evidence from Germany

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  • Dauth, Wolfgang

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Fuchs, Michaela

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Otto, Anne

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This paper analyzes the evolution of geographical concentration in the West German manufacturing, service, and knowledge-intensive sectors over a time period of 30 years. Drawing on detailed plant data of 187 industries from 1980 to 2010, we observe substantial concentration that is highest in manufacturing. Over time, there is a trend of deconcentration encompassing all economic activity. These patterns remain stable when accounting for both various sectoral and regional levels of aggregation and spatial dependencies between neighbouring regions. Investigating the role of plant births, expansions, contractions, and closures for the decline of concentration, we show that the underlying mechanisms differ across sectors. The dispersion of manufacturing industries is driven by contracting and closing plants within industrial agglomerations, whereas the dispersion of the service sector is fostered by the creation of new plants outside industrial agglomerations." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Dauth, Wolfgang & Fuchs, Michaela & Otto, Anne, 2015. "Long-run processes of geographical concentration and dispersion : evidence from Germany," IAB-Discussion Paper 201527, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201527
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    8. Bauluz, Luis & Bukowski, Pawel & Fransham, Mark & Lee, Annie Seong & López Forero, Margarita & Novokmet, Filip & Breau, Sébastien & Lee, Neil & Malgouyres, Clément & Schularick, Moritz & Verdugo, Greg, 2023. "Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019," LSE Research Online Documents on Economics 121290, London School of Economics and Political Science, LSE Library.
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