Local Employment Growth in West Germany: A Dynamic Panel Approach

Uwe Blien (), Jens Suedekum () and Katja Wolf ()
Additional contact information
Jens Suedekum: Heinrich Heine University Düsseldorf
Katja Wolf: Institute for Employment Research (IAB), Nuremberg

No 1723, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we study the dynamics of local employment growth in West Germany from 1980 to 2001. Using dynamic panel techniques, we analyse the timing of the impact of diversity and specialisation, as well as of the human capital structure of local industries. Diversity has a positive effect on employment growth in the short run, which is stronger in manufacturing than in services. Concerning specialization we find evidence for mean reversion, which is inconsistent with the idea that growth emphasizes itself. But there is considerable inertia in this process. A positive effect of education is only found in manufacturing. Additionally, we look at the impact of firm size and regional wages on local employment growth.

Keywords: externalities; egional labour markets; urbanization and localization effects; local employment growth; dynamic panel estimation (search for similar items in EconPapers)
JEL-codes: O40 R11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2005-08
New Economics Papers: this item is included in nep-edu, nep-eec, nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Labour Economics, 2006, 13 (4), 445-458

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Related works:
Journal Article: Local employment growth in West Germany: A dynamic panel approach (2006)
Working Paper: Local Employment Growth in West Germany - A Dynamic Panel Approach (2005)
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