nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒03‒18
six papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung

  1. When the past becomes the future: The problem of policies in ‘left behind’ places By Hertrich, Tobias Johannes; Brenner, Thomas
  2. Labor market dynamics and geographical reallocations By Gaetano Basso; Salvatore Lo Bello; Francesca Subioli
  3. Demographics, labor market power and the spatial equilibrium By Furbach, Nina
  4. Spatial patterns of regional regional inequalities in European Union in pandemic time. Empirical evidence from NUTS-2 regions By Daniela, Antonescu; Ioana, Florescu
  5. Back to the Futur(oscope): a territorial development "bricolaged" by a political entrepreneur? By Olivier Coussi; Bastien Bernela
  6. España | Series largas de agregados económicos y demográficos: Datos hasta 2022 By Angel De la Fuente

  1. By: Hertrich, Tobias Johannes; Brenner, Thomas
    Abstract: The concept of “left behind” places encompasses economic, demographic, infrastructural, social and political aspects. Different studies of the left behind place concept focus on different aspects or combinations of these. Hertrich and Brenner (2024) assume an interplay of many aspects that lead to the left behind feeling but emphasize the emerging dynamics of opinion. The purpose of this paper is to analyze this interaction of individual factors in detail in a case study and thus gain a deeper understanding of the processes that presumably play a role in many other regions. Contrary to perception, the labor market region (LMR) Gera is developing dynamically in many parameters. We find that although the reasons for the left behind feeling can be assigned to the pillars of the model, in most cases they relate to the past. We conclude that the political measures and developments in the LMR to date have not had an effect due to the strong formation of opinion based on historical events. In addition, the dynamics of opinion formation play a major role in left behind places, which has so far been neglected in politics.
    Abstract: Das Konzept der zurückgelassenen" Orte umfasst wirtschaftliche, demografische, infrastrukturelle, soziale und politische Aspekte. Verschiedene Studien zum Konzept der zurückgelassenen Orte konzentrieren sich auf unterschiedliche Aspekte oder Kombinationen dieser Aspekte. Hertrich und Brenner (2024) gehen von einem Zusammenspiel vieler Aspekte aus, die zum "Left behind"-Gefühl führen. Das Ziel dieser Arbeit ist es, dieses Zusammenspiel einzelner Faktoren in einer Fallstudie detailliert zu analysieren und so ein tieferes Verständnis für die Prozesse zu gewinnen, die vermutlich in vielen anderen Regionen eine Rolle spielen. Entgegen der Wahrnehmung entwickelt sich die Arbeitsmarktregion (AMR) Gera in vielen Parametern dynamisch. Wir stellen fest, dass zwar die Gründe den Säulen des Modells zugeordnet werden können, sich aber in den meisten Fällen auf die Vergangenheit beziehen. Wir schließen daraus, dass die politischen Maßnahmen und Entwicklungen in der AMR aufgrund der starken Meinungsbildung aufgrund historischer Ereignisse kaum Wirkung entfalten. Die Dynamik der Meinungsbildung spielt eine große Rolle, die in der Politik bisher vernachlässigt wurde.
    Keywords: left behind place, feeling left behind, case study, lagging region, policy measures, regional development, territorial inequality
    JEL: O18 O20 R11 R12
    Date: 2024
  2. By: Gaetano Basso (Bank of Italy); Salvatore Lo Bello (Bank of Italy); Francesca Subioli (Roma 3 University)
    Abstract: We study how local labor demand shocks affect internal migration using the universe of labor market flows for Italy. First, we document two novel facts: i) large and systematic differences between gross and net job and internal migration flows arise both across space and over time; ii) each gross flow is an important driver of the net growth rates. We estimate the causal impact of different-sign labor demand shocks on internal migration flows using as instrumental variable plausibly exogenous large mass hire and layoffs events. Our estimates reveal that job creation has a strong effect on the in-migration rate, whereas job destruction has a much milder effect on the out-migration rate. Crucially, we document that the large responsiveness of in-migration does not work through an increase in the number of relocating workers, but rather through changes in their chosen destination alternatives. We also find that the effects of job creation on in-migration flows have a much larger geographical reach than those of job destruction, as out-migration flows are locally concentrated.
    Keywords: labor demand, turnover, layoff, geographic labor mobility
    JEL: J23 J61 R23 J63
    Date: 2023–11
  3. By: Furbach, Nina
    Abstract: This paper studies how demographics affect aggregate labor market power, the urban wage premium and the spatial concentration of population. I develop a quantitative spatial model in which labor market competitiveness depends on the demographic composition of the local workforce. Using highly disaggregated administrative data from Germany, I find that firms have more labor market power over older workers: The labor supply elasticity decreases from more than 2 to 1 from age 20 to 64. Calibrating the model with the reduced-form elasticity estimates, I find that differences in labor supply elasticities across age groups can explain 4% of the urban wage premium and 2% of the spatial concentration of population. Demographics and skill together account for 10% of the urban wage premium and 2% of agglomeration. JEL Classification: J11, J31, J42, R23
    Keywords: demographics, Germany, monopsonistic competition, spatial equilibrium, urban wage premium
    Date: 2024–02
  4. By: Daniela, Antonescu; Ioana, Florescu
    Abstract: The outbreak of COVID-19 has induced economic and financial disruptions to global economies, consistent with those experienced during previous episodes of economic or financial crises. This article offers a global perspective into the spread of the virus by investigating the convergence patterns of COVID-19 across 242 regions NUTS 2 in European Union, in period 2019 - 2022. The analysis presents regional imbalances evaluated by statistical techniques and methods that can reflect the evolution concerning the main economic aspects. Using the Gini coefficient for the last four years we demonstrated there was a slow convergence process in the NUTS 2 regions interrupted by the pandemic global crisis. Also, the evolution of the GDP per capita in PPS at regional level in the case of all the Member States for the 1997-2021 was analyzed in order to show the intensity between the crises. The pandemic crisis was also compared to the economic crisis (2008-2009) which demonstrated that the COVID-19 didn’t have the same impact as the financial one, pandemic had the lower intensity.
    Keywords: regional convergence, Gini Coefficient, NUTS 2 Regions, COVID-19 pandemic crisis, economic-financial crisis
    JEL: R0 R11 R15 R19
    Date: 2023–11–03
  5. By: Olivier Coussi (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers, FED 4229 - Fédération Territoires - UP - Université de Poitiers = University of Poitiers - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Bastien Bernela
    Abstract: For many years, public policies for territorial economic development have been inspired by symbols such as Silicon Valley, fueling the dreams of local elected officials. While evaluation processes allow us to assess the efficiency and ex-post performance of the territorial development paths taken, they do not provide a complete understanding of the mechanisms at work in their manufacture. This qualitative research focuses inductively on the genesis and evolution of Futuroscope, an emblematic and atypical figure in the development of a rural area, through a long-term case study. We therefore propose a secondary analysis in the form of a supra-analysis to clarify the mechanisms at work and to shed light on the case with the help of a specific theoretical approach. We show that territorial development does not necessarily produce a territorial ecosystem, or more precisely, that the implementation of a project can generate activity on a territory without sustainably creating productive interactions between stakeholders - interactions that are essential for the qualification of the ecosystem. While territorial development theory neglects the dimension of "public action" and the role of elected representatives as political entrepreneurs, we contribute to this literature by proposing the concept of "territorial bricolage" as a mechanism for producing a territorial development path. The identification of this mechanism of territorial innovation should be a source of inspiration for territorial managers in the implementation of public policies. In particular, in crisis situations, this innovation modality could produce a capacity for territorial resilience, in a combination of bricolage, effectuation and causation.
    Abstract: Les politiques publiques de développement économique territorial s'inspirent depuis de nombreuses années de symboles comme celui de la Silicon Valley, alimentant les rêves des élus locaux. Si les processus d'évaluation permettent de dresser un état de l'efficience et de la performance ex post des chemins de développement territorial empruntés, ils ne permettent pas totalement de comprendre les mécanismes à l'œuvre dans leur fabrique. Cette recherche s'intéresse, de façon inductive, à la genèse et au développement du Futuroscope, figure emblématique et atypique du développement d'un territoire rural, au travers d'une étude de cas qualitative sur un temps long. Alors que la théorie du développement territorial néglige la dimension « action publique » et le rôle de l'élu comme entrepreneur politique, nous contribuons à cette littérature en proposant le concept de « bricolage territorial » comme mécanisme de production d'un chemin de développement territorial.
    Keywords: Bricolage, Développement territorial, Écosystème, Entrepreneur politique, Futuroscope
    Date: 2024–02–01
  6. By: Angel De la Fuente
    Abstract: En este Documento de Trabajo se describe brevemente la última actualización de RegData, una base de datos que recoge los principales agregados económicos y demográficos de las regiones españolas durante las últimas seis décadas. This Working Paper provides a brief description of the latest update of RegData, a database that collects the main economic and demographic aggregates of Spanish regions over the last six decades.
    Keywords: homogeneous series, series homogéneas, income, renta, regional population of Spain, población regional de España, Employment, Empleo, Spain, España, Regional Analysis Spain, Análisis Regional España, Working Paper, Documento de Trabajo
    JEL: E01 R1
    Date: 2024–02

This nep-geo issue is ©2024 by Andreas Koch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.