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What has caused regional employment growth differences in Eastern Germany?

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  • Jens Suedekum
  • Uwe Blien
  • Johannes Ludsteck

Abstract

Using a regression analogue of the shift-share technique we address the explanatory power of various theories about regional differences in employment growth in eastern German districts from 1993 until 2001. We find that overly high regional wages are more important than differences in the qualification, firm-size or industrial structures. The most important source of disparities, however, is the dispersion of idiosyncratic location effects. This suggests that individual districts differ markedly in their capacity to generate employment growth and illustrates the importance of a regional perspective when it comes to the employment problem in eastern Germany in general. Copyright Springer-Verlag 2006

Suggested Citation

  • Jens Suedekum & Uwe Blien & Johannes Ludsteck, 2006. "What has caused regional employment growth differences in Eastern Germany?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(1), pages 51-73, March.
    • Handle: RePEc:spr:jahrfr:v:26:y:2006:i:1:p:51-73
    DOI: 10.1007/s10037-005-0077-2
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    Cited by:

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    3. Annekatrin Niebuhr & Nadia Granato & Anette Haas & Silke Hamann, 2012. "Does Labour Mobility Reduce Disparities between Regional Labour Markets in Germany?," Regional Studies, Taylor & Francis Journals, vol. 46(7), pages 841-858, September.
    4. Piotr Ciżkowicz & Andrzej Rzońca & Wiktor Wojciechowski, 2012. "Determinanty regionalnych różnic w dynamice liczby pracujących w Polsce w latach 1999-2008," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 59-77.
    5. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    6. Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
    7. Matthias Firgo & Oliver Fritz, 2017. "Does having the right visitor mix do the job? Applying an econometric shift-share model to regional tourism developments," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 469-490, May.
    8. Uwe Blien & Lutz Eigenhueller & Markus Promberger & Norbert Schanne, 2013. "The Shift-Share Regression: An Application to Regional Employ-ment Development," ERSA conference papers ersa13p614, European Regional Science Association.
    9. Raimund Krumm & Harald Strotmann, 2013. "The impact of regional location factors on job creation, job destruction and employment growth in manufacturing," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(1), pages 23-48, February.
    10. Julia Kowalewski, 2011. "Specialization and employment development in Germany: An analysis at the regional level," Papers in Regional Science, Wiley Blackwell, vol. 90(4), pages 789-811, November.
    11. Chico, José Ruiz & Sánchez, Antonio Rafael Peña & García, Mercedes Jiménez, 2021. "Análisis de competitividad de las exportaciones españolas con destino a la Unión Europea: especial énfasis en el sector agroalimentario," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 59(4), January.
    12. Anne Margarian & Christian Hundt, 2019. "Location, industry structure and (the lack of) locally specific knowledge: On the diverging development of rural areas in Germany's East and West," Working Papers on Innovation and Space 2019-04, Philipps University Marburg, Department of Geography.
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    More about this item

    Keywords

    Employment Growth; Eastern Germany; Shift-Share-Analysis; Regional Disparities; J23; E2;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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