Arbeitspapier

Regional spillovers and spatial heterogeneity in matching workers and employers in Germany

When job search takes place across labour markets, the standard flow approach to labour market analysis fails to uncover the effectiveness at which workers are matched to available jobs. A spatially augmented matching function is backed by a spatial search model with endogenous search intensity. Recent studies deal with the issue of spatial externalities by assuming the process of job matching to be homogenous across space. This study shows that this supposition is not valid for the unified Germany. Particularly differences in labour mobility give reason for the existence of West-East regimes of the matching process. Spatial heterogeneity is additionally found on the level of German macroregions. Though matching efficiency is affected by labour market characteristics, its cyclical pattern is closely related to business cycle fluctuations. Variation of regional mismatch over the business cycle can only explain a relatively small fraction of matching inefficiency.

Language
Englisch

Bibliographic citation
Series: Volkswirtschaftliche Diskussionsbeiträge ; No. 89

Classification
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Labor Demand
Subject
Matching function
regional mismatch
spatial spillovers
spatial heterogeneity
Arbeitsmarkt
Angebot
Nachfrage
Räumliche Verteilung
Spillover-Effekt
Panel
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Kosfeld, Reinhold
Event
Veröffentlichung
(who)
Universität Kassel, Fachbereich Wirtschaftswissenschaften
(where)
Kassel
(when)
2006

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kosfeld, Reinhold
  • Universität Kassel, Fachbereich Wirtschaftswissenschaften

Time of origin

  • 2006

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