Arbeitspapier
On the Road (Again): Commuting and Local Employment Elasticities in Germany
This paper develops a quantitative spatial general equilibrium model for the German economy to address two issues. First, we explore the role of commuting for local labor markets and their capacity to absorb productivity shocks. Second, we address the role of housing markets for quantitative analyses. Germany is an exciting laboratory because commuting across local labor markets is pervasive, unique data are available, and because Germany's high degree of trade openness poses a thrilling counterpoint to the United States. Our key findings for German counties are that the employment and resident elasticities associated with local productivity shocks are much above unity, yet disparate (the former larger than the latter), very heterogeneous, and only poorly predicted by simple labor market statistics. Allowing the supply of land/housing to be price elastic increases the elasticities and reinforces our conclusions. The regional heterogeneity of the land/housing shares in Germany turns out to be inessential for our findings, the level of the land/housing share plays an important role, however. We perform a plethora of robustness checks which allow us to gain perspective on extant findings for the United States.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 9190
- Classification
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Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
General Equilibrium and Welfare Economic Analysis of Regional Economies
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Subject
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quantitative spatial analysis
commuting
migration
employment and resident elasticities
- Event
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Geistige Schöpfung
- (who)
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Krebs, Oliver
Pflüger, Michael
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2021
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Krebs, Oliver
- Pflüger, Michael
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2021
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Commuting and self-employment in Western Europe
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Employment to output elasticities & reforms towards flexicurity : Evidence from OECD countries
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On the Road (Again): Commuting and Local Employment Elasticities in Germany
There and Back Again: Women's Marginal Commuting Costs
There And Back Again: Women's Marginal Commuting Costs
Commuting farther and earning more? How employment density moderates workers' commuting distance
Commuting and self-employment in Western Europe
Intra-Household Commuting Choices and Local Labour Markets
Elasticities of Regional and Local Administrations Expenditures - the Portuguese case
Commuting, Residence and Workplace Location Attractiveness and Local Public Goods
Employment to output elasticities & reforms towards flexicurity : Evidence from OECD countries
Employment to output elasticities & reforms towards flexicurity: Evidence from OECD countries
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