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Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques

Author

Listed:
  • Uwe Blien

    (Institut für Arbeitsmarkt- und Berufsforschung der Bundesanstalt fü}r Arbeit , Regensburger Str. 104, D-90327 Nürnberg, Germany e-mail: {Uwe.Blien;Katja.Wolf}@iab.de))

  • Katja Wolf

    (Institut für Arbeitsmarkt- und Berufsforschung der Bundesanstalt fü}r Arbeit , Regensburger Str. 104, D-90327 Nürnberg, Germany e-mail: {Uwe.Blien;Katja.Wolf}@iab.de))

Abstract

We extend in this analysis an approach introduced by Patterson and suggested by Möller and Tassinopoulos. Our approach uses a generalization of an econometric analogue of the common shift-share method, suggested here as a new "workhorse" for regional analyses. The results obtained with this shift-share-regression, and with very differentiated data from the employment statistics of eastern Germany, show that processes of deconcentration play a role in explaining regional disparities, since inverse localization and positive urbanization effects are visible. The relevant processes can be understood by implementing approaches of "new economic geography", structural change and endogenous growth theory.

Suggested Citation

  • Uwe Blien & Katja Wolf, 2002. "Regional development of employment in eastern Germany: an analysis with an econometric analogue to shift-share techniques," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 391-414.
    • Handle: RePEc:spr:presci:v:81:y:2002:i:3:p:391-414
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    References listed on IDEAS

    as
    1. Thomas Lange & Geoffrey Pugh, 1998. "The Economics of German Unification," Books, Edward Elgar Publishing, number 794.
    2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    3. D C Knudsen & R Barff, 1991. "Shift-Share Analysis as a Linear Model," Environment and Planning A, , vol. 23(3), pages 421-431, March.
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    More about this item

    Keywords

    Shift-share method; employment development; deconcentration; localization effects; regional growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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