Agglomeration, Growth, and Adjustment
A Theoretical and Empirical Study of Regional Labor Markets in Germany
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Beschreibung
By means of theoretical and empirical analysis agglomeration economies as localized returns to scale are established as the basic source of economic disparity. The central implication for the labor market is the resulting path dependency of the spatial employment pattern. As an empirical investigation of migration within Germany documents strong regional segmentation in the short run, local wage formation is of particular importance for the adjustment process in response to changes of the spatial employment pattern. However, a theoretical discussion shows that in the German setting with centralized wage bargaining local wages tends to be inflexible. This view is supported by an empirical investigation of the spatial wage structure in Germany using district data.
It is dealt with disparities in employment growth, unemployment, and wages between regional labor markets in Germany. First, endogenous formation and growth of industry locations due to agglomeration economies is established as a basic source of disparity in employment. Then, spatial frictions and local wage inflexibility due to central wage bargaining are detected as causes of unemployment disparities. Throughout the book theoretical analysis is combined with rigorous empirical testing using a large set of regional data at district level. In order to gain and robustify empirical results, recent methods in panel econometrics and spatial data analysis are employed. An overview on the extent of key regional labor market disparities in Germany is given. The book enables to assess our current understanding of the role of locational issues in causing those disparities, and thus to understand the basic justification of regional policy.
Autor*in
Thiess Büttner
Themen in »Agglomeration, Growth, and Adjustment«
Migration Regional Labour Market agglomeration employment employment growth labor market labor markets regional development regional policy regionaler Arbeitsmarkt unemployment