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The Importance of Spatial Autocorrelation for Regional Employment Growth in Germany

Ulrich Zierahn

No 201031, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: In analyzing the disparities of the regional developments in the volume of employment in Germany, in the recent empirical literature so called shift-share-regression-models are frequently applied. However, these models usually neglect spatial interdependencies, even though such interdependencies are likely to occur on a regional level. Therefore, this paper focuses on the importance of spatial dependencies using spatial autocorrelation in order to analyze regional employment development. Spatial dependency in the form of spatial lag, spatial error and cross regressive model are compared. The results indicate that the exogenous variables’ spatial lag sufficiently explains the spatial autocorrelation of regional employment growth.

Keywords: spatial interdependency; spatial autocorrelation; shift-share-regression; regional employment growth (search for similar items in EconPapers)
JEL-codes: C21 E24 R11 R23 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2010
New Economics Papers: this item is included in nep-cba, nep-cdm, nep-for, nep-mac and nep-mon
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http://www.uni-marburg.de/fb02/makro/forschung/31-2010_zierahn.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: The importance of spatial autocorrelation for regional employment growth in Germany (2012) Downloads
Working Paper: The importance of spatial autocorrelation for regional employment growth in Germany (2011) Downloads
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