Structural change and regional employment dynamics

Uwe Blien () and Helge Sanner

No 82, Volkswirtschaftliche Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: A casual look at regional unemployment rates reveals that there are vast differences, which cannot be explained by different institutional settings. Our paper attempts to trace these differences in the labor market performance back to the regions' specialization in products that are more or less advanced in their product cycle. The model we develop shows how individual profit and utility maximization endogenously yields higher employment levels in the beginning. In later phases, however, employment decreases in the presence of process innovation. Our model suggests that the only way to escape from this vicious circle is to specialize in products that are at the beginning of their "economic life". The model is based on an interaction of demand and supply side forces.

Keywords: Structural change; Productivity growth; Labor market dynamics; Specialization of Regions (search for similar items in EconPapers)
JEL-codes: D91 J23 O41 R23 (search for similar items in EconPapers)
Date: 2006-02
New Economics Papers: this item is included in nep-geo and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-14425 (application/pdf)

Related works:
Working Paper: Structural change and regional employment dynamics (2006)
Working Paper: Structural Change and Regional Employment Dynamics (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pot:vwldis:82

Access Statistics for this paper

More papers in Volkswirtschaftliche Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät Contact information at EDIRC.
Bibliographic data for series maintained by Marco Winkler ().