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The Importance of Spatial Autocorrelation for Regional Employment Growth in Germany

  • Ulrich Zierahn

    (University of Kassel and Hamburg Institute of International Economics)

In analyzing the disparities of the regional developments in the volume of employment in Germany, in the recent empirical literature so called shift-share-regression-models are frequently applied. However, these models usually neglect spatial interdependencies, even though such interdependencies are likely to occur on a regional level. Therefore, this paper focuses on the importance of spatial dependencies using spatial autocorrelation in order to analyze regional employment development. Spatial dependency in the form of spatial lag, spatial error and cross regressive model are compared. The results indicate that the exogenous variables’ spatial lag sufficiently explains the spatial autocorrelation of regional employment growth.

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/31-2010_zierahn.pdf
File Function: First version, 2010
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Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201031.

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Length: 29 pages
Date of creation: 2010
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:201031
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  1. Reinhold Kosfeld & Hans-Friedrich Eckey & Jorgen Lauridsen, 2008. "Disparities in Prices and Income across German NUTS 3 Regions," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 54(2), pages 123-141.
  2. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, June.
  3. Reinhold Kosfeld & Christian Dreger, 2005. "Thresholds for Employment and Unemployment - a Spatial Analysis of German Regional Labour Markets 1992-2000," ERSA conference papers ersa05p39, European Regional Science Association.
  4. Suedekum, Jens & Blien, Uwe, 2004. "Wages and Employment Growth: Disaggregated Evidence for West Germany," IZA Discussion Papers 1128, Institute for the Study of Labor (IZA).
  5. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  6. Blien, Uwe & Suedekum, Jens & Wolf, Katja, 2006. "Local employment growth in West Germany: A dynamic panel approach," Labour Economics, Elsevier, vol. 13(4), pages 445-458, August.
  7. Overman, Henry G & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers.
  8. Blien, Uwe & Wolf, Katja, 2002. "Regional development of employment in eastern Germany. An analysis with an econometric analogue to shift-share techniques," ERSA conference papers ersa02p263, European Regional Science Association.
  9. Jens Suedekum & Uwe Blien, 2007. "Stimulating Employment Growth with Higher Wages? A New Approach to Addressing an Old Controversy," Kyklos, Wiley Blackwell, vol. 60(3), pages 441-464, 08.
  10. Peter Nijkamp & Jacques Poot, 1998. "original: Spatial perspectives on new theories of economic growth," The Annals of Regional Science, Springer, vol. 32(1), pages 7-37.
  11. repec:kas:wpaper:2006-81 is not listed on IDEAS
  12. Eileen Appelbaum & Ronald Schettkat, 1994. "The end of full employment? On economic development in industrialized countries," Intereconomics: Review of European Economic Policy, Springer, vol. 29(3), pages 122-130, May.
  13. J¸rgen Jerger & Jochen Michaelis, 2003. "Wage Hikes as Supply and Demand Shock," Metroeconomica, Wiley Blackwell, vol. 54(4), pages 434-457, November.
  14. Niebuhr, Annekatrin, 2000. "Räumliche Wachstumszusammenhänge - empirische Befunde für Deutschland," HWWA Discussion Papers 84, Hamburg Institute of International Economics (HWWA).
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