Arbeitspapier

Local employment growth in West Germany: a dynamic panel approach

In this paper we study the dynamics of local employment growth in West Germany from 1980 to 2001. Using dynamic panel techniques, we analyse the timing of the impact of diversity and specialisation, as well as of the human capital structure of local industries. Diversity has a positive effect on employment growth in the short run, which is stronger in manufacturing than in services. Concerning specialization we find evidence for mean reversion, which is inconsistent with the idea that growth emphasizes itself. But there is considerable inertia in this process. A positive effect of education is only found in manufacturing. Additionally, we look at the impact of firm size and regional wages on local employment growth.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 1723

Classification
Wirtschaft
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Economic Growth and Aggregate Productivity: General
Subject
regional labor markets
externalities
local employment growth
dynamic panel estimation
urbanization and localisation effects
Regionaler Arbeitsmarkt
Regionales Wachstum
Beschäftigungseffekt
Lokalisationseffekt
Regionale Wirtschaftsstruktur
Wissenstransfer
Schätzung
Deutschland
Urbanisierungseffekt

Event
Geistige Schöpfung
(who)
Blien, Uwe
Suedekum, Jens
Wolf, Katja
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2005

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Blien, Uwe
  • Suedekum, Jens
  • Wolf, Katja
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2005

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