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(Un)Related Variety and Employment Growth at the Sub-Regional Level

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  • Matthias Firgo
  • Peter Mayerhofer

Abstract

Empirical results on the link between growth and diversity in (un)related industries proved to be highly dependent on the specific regional and temporal context. Making use of highly disaggregated employment data at the sub-regional level, we find that higher employment growth in Austria is mainly linked to unrelated variety. However, in-depth analyses by sectors and regional regimes illustrate substantial heterogeneity in the results, mainly driven by the service sector and by a large number of relatively small regions. Thus, our results argue against structural policy conclusions based on assessments across all economic sectors or different types of regions.

Suggested Citation

  • Matthias Firgo & Peter Mayerhofer, 2016. "(Un)Related Variety and Employment Growth at the Sub-Regional Level," Papers in Evolutionary Economic Geography (PEEG) 1604, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2016.
    • Handle: RePEc:egu:wpaper:1604
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    References listed on IDEAS

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    More about this item

    Keywords

    related variety; specialization; knowledge spillovers; employment growth; structural policy;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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