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Structural change and regional employment dynamics

Uwe Blien () and Helge Sanner

No 200606, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

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 regions' labour market performance back to the regions' specialisation in products that are more or less advanced in their product cycle. The model we develop shows how individual profit and utility maximisation endogenously leads to decreasing employment in the presence of process innovation. Things deteriorate even further if the region under observation is less innovative than others. 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." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beschäftigungsentwicklung; Produktinnovation; regionale Disparität; regionaler Arbeitsmarkt; Arbeitslosenquote; Wirtschaftsstrukturwandel (search for similar items in EconPapers)
JEL-codes: D91 J23 O41 R23 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2006
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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https://doku.iab.de/discussionpapers/2006/dp0606.pdf

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Working Paper: Structural change and regional employment dynamics (2006) Downloads
Working Paper: Structural Change and Regional Employment Dynamics (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200606

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