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Structural change and regional employment development

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  • Blien, Uwe
  • Sanner, Helge

Abstract

An examination of regional unemployment rates reveals that there are vast differences which cannot be explained by different institutional. Our paper traces these differences in the regions labour market performance back to the regions specialisation in products that are more or less advanced in their product cycle. The model we develop shows how profit maximisation and its interaction with individual preferences endogenously lead to initially increasing and then decreasing employment in the presence of process innovation. We show how processes of structural change develop in time and how they are linked to technological progress.

Suggested Citation

  • Blien, Uwe & Sanner, Helge, 2015. "Structural change and regional employment development," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113162, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:113162
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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