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Commuters' effect on local labour markets: A german case study

  • Giovanni Russo
  • Peter Nijkamp


  • Aura Reggiani
  • Federico Tedeschi


This paper offers an exploratory investigation of the effects of inbound commuter flows on employment in regional labour markets in Germany. For this purpose, we distinguish three channels that could transmit the effects concerned: a crowding-out mechanism, and two labour demand effects (the first is an aggregate demand effect, while the second is a positive externality on vacancy creation). To this end, we develop a stepwise commuting impact model. Our results bring to light that, on the whole, commuter flows have a positive and robust effect on both employment and the number of jobs in the receiving labour market districts, but a distinctly negative effect on the share of jobs filled by resident workers. We then interpret the implications of our results, and, finally, we suggest ways in which the analysis could be improved and expanded.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1376.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p1376
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  1. Mihails Hazans, 2005. "Does Commuting Reduce Wage Disparities?," Labor and Demography 0509012, EconWPA.
  2. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2005. "Firm Fragmentation and Urban Patterns," Discussion Papers 04-019, Stanford Institute for Economic Policy Research.
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  4. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," Working Papers 633, Princeton University, Department of Economics, Industrial Relations Section..
  5. Bayer, Christian & Juessen, Falko, 2006. "Convergence in West German Regional Unemployment Rates," Technical Reports 2006,39, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
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  7. Eckhardt Bode, 2006. "Commuting, Externalities, and the Geographical Sizes of Metropolitan Areas," Kiel Working Papers 1289, Kiel Institute for the World Economy.
  8. Zenou, Yves, 2007. "Endogenous Job Destruction and Job Matching in Cities," IZA Discussion Papers 2695, Institute for the Study of Labor (IZA).
  9. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
  10. Shields, Martin & Shideler, David W., 2003. "Do Commuters Free-ride? Estimating the Impacts of Interjurisdictional Commuting on Local Public Goods Expenditures," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1).
  11. Mocetti, Sauro & Porello, Carmine, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 427-439, November.
  12. J. Paul Elhorst, 2003. "The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 709-748, December.
  13. Hazans, Mihails, 2003. "Commuting in the Baltic States: Patterns, determinants and gains," ZEI Working Papers B 02-2003, ZEI - Center for European Integration Studies, University of Bonn.
  14. Andersson, Martin & Karlsson, Charlie, 2005. "Knowledge Accessibility and Regional Economic Growth," Working Paper Series in Economics and Institutions of Innovation 40, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  15. Joshua Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," NBER Working Papers 8456, National Bureau of Economic Research, Inc.
  16. Guisan, M.Carmen & Aguayo, Eva, 2001. "Employment and regional development in Germany," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 1(2), pages 59-90.
  17. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.
  18. Anas, Alex & Xiong, Kai, 2005. "The formation and growth of specialized cities: efficiency without developers or Malthusian traps," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 445-470, July.
  19. Südekum, Jens, 2008. "Convergence of the skill composition across German regions," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 148-159, March.
  20. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
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