Structural change and regional employment dynamics

Arbeitspapier

A casual look at regional unemployment rates reveals that there are vast differences which cannot be explained by different institutional settings. Our paper attempts to trace these differences in the regions' labour market performance back to the regions' specialisation in products that are more or less advanced in their product cycle. The model we develop shows how individual profit and utility maximisation endogenously leads to decreasing employment in the presence of process innovation. Things deteriorate even further if the region under observation is less innovative than others. Our model suggests that the only way to escape from this vicious circle is to specialize in products that are at the beginning of their economic life.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAB-Discussion Paper ; No. 6/2006

Classification and Topics

• Classification: Wirtschaft ; One, Two, and Multisector Growth Models ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Labor Demand ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: Arbeitslosenquote ; regionale Disparität ; regionaler Arbeitsmarkt ; Produktinnovation ; Wirtschaftsstrukturwandel ; Beschäftigungsentwicklung ; Regionaler Arbeitsmarkt ; Regionaler Strukturwandel ; Produktivität ; Regionale Arbeitsteilung ; Produktlebenszyklus ; Regionale Arbeitslosigkeit ; Technischer Fortschritt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blien, Uwe ; Sanner, Helge
• Event: Veröffentlichung
• (who): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (where): Nürnberg
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/31893
• Last update: 10.03.2025, 11:41 AM CET