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Missing Men: World War II Casualties and Structural Change

Christoph Eder

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: A shock to the sector composition of the local labor market can affect long-run economic development of a location. Because structural change ultimately shifts labor from agriculture to services, an early transition to manufacturing may hamper long-run prosperity. The identification strategy exploits military World War II (WWII) casualties in Austrian municipalities as an exogenous shock to the local labor market. WWII casualties shifted labor out of agriculture into manufacturing in the short-run, which eventually led to a differential path of structural change. In the long-run, I find a strong and robust negative effect of WWII casualties on subsequent economic output.

Keywords: structural change; local labor markets; spatial equilibrium; World War II; Austria (search for similar items in EconPapers)
JEL-codes: O14 J40 N14 R11 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-gro, nep-his, nep-lma and nep-ure
Date: 2016-07
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Working Paper: Missing Men:World War II Casualties and Structural Change (2016) Downloads
Working Paper: Missing Men: World War II Casualties and Structural Change (2014) Downloads
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Persistent link: http://EconPapers.repec.org/RePEc:inn:wpaper:2016-22

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