The Impact of the German Autobahn Net on Regional Labor Market Performance: A Study Using Historical Instrument Variables

Joachim Möller and Marcus Zierer
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Marcus Zierer: University of Regensburg

No 8593, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyzes the impact of the German autobahn net on the economic performance of German regions. To address endogeneity and reverse causation problems, we use historical instrument variables, i.e. a plan of the railroad net in 1890 and a plan of the autobahn net in 1937. We find a statistically and economically significant causal effect of transport infrastructure investments as measured by changes in the length of the autobahn net of West German NUTS 3 areas on regional employment and the wage bill.

Keywords: transport infrastructure; regional labor market performance; historical instrumental variables; reverse causation; new economic geography (search for similar items in EconPapers)
JEL-codes: L91 N73 N74 R11 R40 R49 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-10
New Economics Papers: this item is included in nep-geo, nep-his, nep-lab, nep-lma, nep-tre and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: THE IMPACT OF THE GERMAN AUTOBAHN NET ON REGIONAL LABOR MARKET PERFORMANCE: A STUDY USING HISTORICAL INSTRUMENT VARIABLES (2014)
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