Sectoral Diversity and Local Employment Growth in France

Nadine Levratto and Mounir Amdaoud

No 2024-34, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper investigates how variety affects regional employment growth in France over the period 2004-2015. Starting from the seminal contribution of Frenken et al. (2007), we argue that intra-industry externalities foster employment growth. However, we don’t distinguish yet between the own effect of related variety of the region and that of its neighbourhood. Hence, we suggest that conceptual progress can be made when analysis considers the direct and indirect (neighbourhood) dimension of variety. Our empirical investigations confirm that related variety has a positive effect on employment growth. Moreover, this impact seems to be driven by the endogenous dimension of related variety in growth phase and by exogenous dimension in crisis period. We also find that the negative relationship between unrelated variety and employment growth goes only through the endogenous canal.

Keywords: Related variety; unrelated variety; employment growth; neighbourhood effects; France (search for similar items in EconPapers)
JEL-codes: D62 O18 R11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2024
New Economics Papers: this item is included in nep-eur, nep-geo, nep-sbm and nep-ure
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Journal Article: Sectoral Diversity and Local Employment Growth in France (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2024-34

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