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Structural change and regional employment dynamics
Strukturwandel und regionale Beschäftigungsdynamik
[working paper]
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 o... view more
"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]... view less
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; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications
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