Regional Dependencies in Job Creation: An Efficiency Analysis for Western Germany

René Fahr () and Uwe Sunde

No 1660, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the efficiency of the matching process between job seekers and vacancy posting firms in West-Germany, using variation across labor market regions and across time. The results of a stochastic frontier analysis shed new light on extent and regional differences of search frictions, on potential determinants of frictional inefficiencies and on the consequences of German reunification for the matching process. The paper also presents novel evidence on the complex interactions between spatial contingencies among regional labor markets: matching efficiency decreases with spatial autocorrelation in hiring, implying indirect evidence for crowding externalities.

Keywords: spatial autocorrelation; regional unemployment; stochastic frontier; matching function (search for similar items in EconPapers)
JEL-codes: J21 J61 J64 R12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2005-07
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published - published in: Applied Economics, 2006, 38 (10), 1193-1206

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Related works:
Journal Article: Regional dependencies in job creation: an efficiency analysis for Western Germany (2006)
Working Paper: Regional dependencies in job creation: An efficiency analysis for Western Germany (2006)
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