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How does the COVID-19 pandemic affect regional labour markets and why do large cities suffer most?

Author

Listed:
  • Hamann, Silke

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Niebuhr, Annekatrin

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Kiel)

  • Roth, Duncan

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Sieglen, Georg

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"We estimate spatially heterogeneous effects of the COVID-19 pandemic on labour market dynamics in Germany until December 2021. While initially slightly larger in rural regions, adverse effects quickly become more pronounced and persistent in large agglomerations. We ascribe the larger impact of the pandemic in large agglomerations to two factors. First, a combination of a higher share of skilled workers and jobs suitable for working-from-home is positively related to an increased inflow rate into unemployment. We argue that spillover effects from reduced product market demand in large cities caused by changes in behaviour such as working-from-home or online shopping are a possible explanation. Second, a higher pre-crisis unemployment rate in large agglomerations is associated with a lower outflow rate out of unemployment. This might reflect the less favourable composition of unemployment in large cities which reduces the probability of transitions into employment during crises." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Hamann, Silke & Niebuhr, Annekatrin & Roth, Duncan & Sieglen, Georg, 2023. "How does the COVID-19 pandemic affect regional labour markets and why do large cities suffer most?," IAB-Discussion Paper 202303, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202303
    DOI: 10.48720/IAB.DP.2303
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    Cited by:

    1. Böhme, Stefan & Eigenhüller, Lutz & Rossen, Anja & Straßer, Felicitas, 2023. "Entwicklung von Beschäftigung und Arbeitslosigkeit im Arbeitsagenturbezirk München," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Bayern 202301, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Pandemie ; IAB-Open-Access-Publikation ; Auswirkungen ; Ballungsraum ; Beschäftigungseffekte ; E-Commerce ; Großstadt ; Gütermarkt ; Arbeitslosigkeitsentwicklung ; Informationswirtschaft ; Kleinstadt ; ländlicher Raum ; Nachfrageentwicklung ; regionaler Arbeitsmarkt ; regionaler Vergleich ; qualifikationsspezifische Faktoren ; mobiles Arbeiten ; Stadtregion ; Telearbeit ; Arbeitslosigkeit ; Arbeitsmarktentwicklung ; Zu- und Abgänge ; 2017-2021;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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