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Provision of public goods, voting and agglomerative bias

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  • Kopp, Andreas

Abstract

Skill-biased technical change is identified as the driving force behind the changing skill composition in OECD countries rather than structural change. The finding is partly the result of the sectoral view taken. This paper suggests a different view which uses the production process as a starting point. The economy is divided into physica production, personal services, and intermediate services; these branches are again subdivided. Applying the resulting grid to German data from the Socio-economic Panel shows that a structural change in the production process is driving the skill composition of the German labor force.

Suggested Citation

  • Kopp, Andreas, 1998. "Provision of public goods, voting and agglomerative bias," Kiel Working Papers 862, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:862
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    References listed on IDEAS

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    1. Berliant, Marcus & ten Raa, Thijs, 1991. "On the continuum approach of spatial and some local public goods or product differentiation models: Some problems," Journal of Economic Theory, Elsevier, vol. 55(1), pages 95-120, October.
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    5. Westhoff, Frank, 1977. "Existence of equilibria in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 14(1), pages 84-112, February.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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