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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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File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper1376.pdf
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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. 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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  8. 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.
  9. 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.
  10. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
  11. Sauro Mocetti & Carmine Porello, 2010. "How does immigration affect native internal mobility? New evidence from Italy," Temi di discussione (Economic working papers) 748, Bank of Italy, Economic Research and International Relations Area.
  12. 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.
  13. 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.
  14. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
  15. Eckhardt Bode, 2006. "Commuting, Externalities, and the Geographical Sizes of Metropolitan Areas," Kiel Working Papers 1289, Kiel Institute for the World Economy.
  16. Südekum, Jens, 2008. "Convergence of the skill composition across German regions," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 148-159, March.
  17. Mihails Hazans, 2005. "Does Commuting Reduce Wage Disparities?," Labor and Demography 0509012, EconWPA.
  18. Zenou, Yves, 2007. "Endogenous Job Destruction and Job Matching in Cities," IZA Discussion Papers 2695, Institute for the Study of Labor (IZA).
  19. 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.
  20. 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).
  21. 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.
  22. 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.
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