Benefits of dense labour markets: evidence from transitions to employment in Germany

Silke Hamann, Annekatrin Niebuhr and Jan Cornelius Peters
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Silke Hamann: Institute for Employment Research (IAB), Nuremberg, Germany

No 201613, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We analyse whether the size of the local labour market allows for better matching between job seekers and vacancies, which is thought to enhance productivity. This analysis is based on a large data set providing detailed micro-level information on new employment relationships in Germany. Our results suggest rather small matching benefits. Doubling employment density increases the productivity of new employment relationships by 1.1% to 1.2%. Moreover, the findings indicate that the benefits accrue only to persons experiencing job-to-job transitions and short-term unemployed. We detect no important impact of agglomeration on transitions from long-term non-employed." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Integrierte Erwerbsbiografien; kurzfristige Arbeitslosigkeit; matching; offene Stellen; Produktivitätseffekte; Arbeitsmarktregion; Arbeitsplatzdichte; Arbeitsuchende; 2005-2011 (search for similar items in EconPapers)
JEL-codes: J31 R23 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201613

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