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Sectoral Diversity and Local Employment Growth in France

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  • Nadine Levratto
  • Mounir Amdaoud

Abstract

This paper investigates how variety affects regional employment growth in France over the period 2004-2015. Starting from the seminal contribution of Frenken et al. (2007), we argue that intra-industry externalities foster employment growth. However, we don’t distinguish yet between the own effect of related variety of the region and that of its neighbourhood. Hence, we suggest that conceptual progress can be made when analysis considers the direct and indirect (neighbourhood) dimension of variety. Our empirical investigations confirm that related variety has a positive effect on employment growth. Moreover, this impact seems to be driven by the endogenous dimension of related variety in growth phase and by exogenous dimension in crisis period. We also find that the negative relationship between unrelated variety and employment growth goes only through the endogenous canal.

Suggested Citation

  • Nadine Levratto & Mounir Amdaoud, 2024. "Sectoral Diversity and Local Employment Growth in France," EconomiX Working Papers 2024-34, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2024-34
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    References listed on IDEAS

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    1. Aarstad, Jarle & Kvitastein, Olav A. & Jakobsen, Stig-Erik, 2016. "Related and unrelated variety as regional drivers of enterprise productivity and innovation: A multilevel study," Research Policy, Elsevier, vol. 45(4), pages 844-856.
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    10. Jürgen Essletzbichler, 2007. "Diversity, Stability and Regional Growth in the United States, 1975–2002," Chapters, in: Koen Frenken (ed.), Applied Evolutionary Economics and Economic Geography, chapter 10, Edward Elgar Publishing.
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    More about this item

    Keywords

    Related variety; unrelated variety; employment growth; neighbourhood effects; France;
    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
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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