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The Impact of the German Autobahn Net on Regional Labor Market Performance: A Study Using Historical Instrument Variables

Author

Listed:
  • Möller, Joachim

    (Institute for Employment Research (IAB), Nuremberg)

  • Zierer, Marcus

    (University of Regensburg)

Abstract

This paper analyzes the impact of the German autobahn net on the economic performance of German regions. To address endogeneity and reverse causation problems, we use historical instrument variables, i.e. a plan of the railroad net in 1890 and a plan of the autobahn net in 1937. We find a statistically and economically significant causal effect of transport infrastructure investments as measured by changes in the length of the autobahn net of West German NUTS 3 areas on regional employment and the wage bill.

Suggested Citation

  • Möller, Joachim & Zierer, Marcus, 2014. "The Impact of the German Autobahn Net on Regional Labor Market Performance: A Study Using Historical Instrument Variables," IZA Discussion Papers 8593, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8593
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    References listed on IDEAS

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    Cited by:

    1. Adolf K.Y. Ng & Zaili Yang & Stephen Cahoon & Paul T.W. Lee & Philipp Breidenbach & Timo Mitze, 2016. "The Long Shadow of Port Infrastructure in Germany: Cause or Consequence of Regional Economic Prosperity?," Growth and Change, Wiley Blackwell, vol. 47(3), pages 378-392, September.

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    More about this item

    Keywords

    transport infrastructure; regional labor market performance; historical instrumental variables; reverse causation; new economic geography;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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