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Local labour markets and socio-economic change: evidence from Danish towns, 2008--2013

Kalle Emil Holst Hansen

European Planning Studies, 2016, vol. 24, issue 5, 904-925

Abstract: The recent financial and economic crisis had substantial but spatially differentiated impacts on growth. However, there is still a lot left to be understood about the local aspects of the crisis. One of these aspects is its socio-economic consequences. This paper investigates local socio-economic change to Danish towns from 2008 to 2013, with a focus on the impact of local labour market (LLM) structures on change. Socio-economic change in towns is measured both directly as mean income and employment growth, and indirectly as population and human capital growth. The paper relies on micro-data and uses robust regression to generate results. Several findings are presented, but the two main conclusions are: first, the LLM structures of towns still influence local socio-economic development; and, second, towns experience better socio-economic development if they are in close proximity to a larger labour market and/or have a large ratio of commuters in the working population.

Date: 2016
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DOI: 10.1080/09654313.2016.1142937

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