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Structural change and regional employment dynamics

Strukturwandel und regionale Beschäftigungsdynamik
[working paper]

Blien, Uwe; Sanner, Helge

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Corporate Editor Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
Abstract "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." [author's abstract]
Keywords unemployment; quota; regional difference; labor market; region; product; economic structure; structural change; employment trend; Federal Republic of Germany
Classification Economic Statistics, Econometrics, Business Informatics; Labor Market Research
Method empirical; basic research
Document language English
Publication Year 2006
City Nürnberg
Page/Pages 27 p.
Series IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung, 6/2006
Status Published Version
Licence Deposit Licence - No Redistribution, No Modifications
data provider This metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne