nep-geo New Economics Papers
on Economic Geography
Issue of 2024‒07‒15
six papers chosen by
Andreas Koch, Institut für Angewandte Wirtschaftsforschung


  1. Unemployment, Segregation, and the Structure of Cities By Heuermann, Daniel F.; Vom Berge, Philipp
  2. The Effect of Postsecondary Educational Institutions on Local Economies: A Bird's-Eye View By Lehnert, Patrick; Dell, Madison; Backes-Gellner, Uschi; Bettinger, Eric
  3. Government reform and innovation performance in China By Zhang, Min; Rodríguez-Pose, Andrés
  4. Spain, Split and Talk: Quantifying Regional Independence By Hanna Adam; Mario Larch; Jordi Paniagua
  5. Borders and Population Growth: Evidence from a Century of Border Regime Changes on the Austrian-Czech Border By Lucie Coufalová; Fanny H. Dellinger; Peter Huber; Štěpán Mikula
  6. A New Geography of Inequality: Top incomes in Italian Regions and Inner Areas By Demetrio Guzzardi; Salvatore Morelli

  1. By: Heuermann, Daniel F. (University of Europe for Applied Sciences); Vom Berge, Philipp (Institute for Employment Research (IAB), Nuremberg)
    Abstract: We examine the residential segregation of workers and the unemployed in the 80 largest cities in Germany. Drawing on a large set of geo-referenced data for the period from 2000 until 2015, we are able to study the within-city distribution of unemployment in unprecedented detail. We document a strong and persistent rise in segregation between workers and the unemployed along three dimensions: spatial unevenness, centrality, and localization. First, we show that cities have become spatially less even with respect to the distribution of unemployment. Regarding centrality, we demonstrate that local unemployment rates tend to be highest in downtown areas and decrease quickly with distance from the urban core. This relationship has strengthened over time. We investigate whether a strong reurbanization trend in German cities after 2007 might explain rising unevenness and concentration of unemployment in the center, but find little affirmative evidence. Instead, the strong overall rise of segregation was characterized by a third phenomenon: a trend towards 'localization', i.e., a tendency of workers and the unemployed to sort into increasingly small-scale but internally more homogeneous residential areas.
    Keywords: unemployment, urban labor markets, residential segregation, spatial structure
    JEL: J61 R11 R12 R23
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17058&r=
  2. By: Lehnert, Patrick (University of Zurich); Dell, Madison (Stanford University); Backes-Gellner, Uschi (University of Zurich); Bettinger, Eric (Stanford University)
    Abstract: Despite worldwide expansion of higher education, the impact of higher education institutions on local economic activity is still poorly understood. We analyze the local economic effects of branch campus openings in Tennessee and Texas, two states representative of the underlying U.S. enrollment patterns. To overcome the lack of adequate data, we use a novel proxy for regional economic activity based on daytime satellite imagery. Applying different panel methods—traditional difference-in-differences (DD), heterogeneity-robust DD, and instrumental variables—we find positive effects. Independent data show an increase in college graduates and employment in the sectors aligned with programs offered at branch campuses.
    Keywords: postsecondary education, regional economic development, higher education, social returns to education
    JEL: I23 I25 I26 R12
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17059&r=
  3. By: Zhang, Min; Rodríguez-Pose, Andrés
    Abstract: Innovation is key for economic growth and well-being. The capacity for innovation, however, is profoundly influenced by the quality of local institutions. Although the impact of national institutions on innovation is well-documented, the effects of subnational institutional variations on innovation remain underexplored. This paper studies the impact of government agency reforms, designed to enhance local government effectiveness, on the innovation performance of city-regions in China. We examine the adoption of these reforms between 2009 and 2016 as an exogenous shock to regional institutions. Our analysis identifies a positive and significant relationship between improvements in institutional quality and the innovation performance of Chinese city-regions, particularly pronounced in regions with medium to high levels of innovation. The results are robust to a series of checks including placebo and endogeneity tests and potential confounding policies. This research highlights the critical role of government institutions in driving innovation across China, bringing the fore important regional variations in the adoption of government agency reforms that are defining the country’s innovation landscape.
    Keywords: institutions; government quality; institutional reform; regional innovation; China; REF fund
    JEL: R11 O11
    Date: 2024–06–01
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:122728&r=
  4. By: Hanna Adam; Mario Larch; Jordi Paniagua
    Abstract: We quantify the economic impact of a potential secession of Catalonia from Spain. Using a novel dataset of trade flows between 17 Spanish sub-national regions and 142 countries, we estimate the effects of different levels of borders on trade flows and un- cover heterogeneity in country-to-country, region-to-country, region-to-region, and EU border effects. We use a general equilibrium analysis to understand the con- sequences of a potential Catalan secession, considering the associated political un- certainty. In counterfactual experiments, we impose new borders on Catalan trade, potentially within or outside the EU, resulting in a welfare decline for Catalonia and the remaining Spanish regions.
    Keywords: international trade; regional trade; border effects; regional independence
    Date: 2024–01
    URL: https://d.repec.org/n?u=RePEc:bav:wpaper:231_adamlarchpaniagua&r=
  5. By: Lucie Coufalová (Masaryk University, Faculty of Economics and Administration, Department of Economics, Brno, Czech Republic); Fanny H. Dellinger (WIFO, Vienna, Austria); Peter Huber (WIFO, Vienna, Austria); Štěpán Mikula (Masaryk University, Faculty of Economics and Administration, Department of Economics, Brno, Czech Republic)
    Abstract: We analyze the impacts of three major unexpected border regime changes that occurred during the course of 20th century on population growth along the Austrian-Czech border. Using historical municipal-level census data reaching back to 1880, we find no effects of the dissolution of the Austro-Hungarian Empire (1919) but strong and oppositely signed effects of the drawing (1948) and the fall (1989) of the Iron Curtain in both countries. Our findings indicate that border regimes affect population growth via economic as well as non-economic mechanisms.
    Keywords: Population growth, border regions, economic geography
    JEL: N94 R12 R23 J11
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:mub:wpaper:2024-03&r=
  6. By: Demetrio Guzzardi; Salvatore Morelli
    Abstract: Detailed distributional estimates at finer geographical levels remain scarce, despite their critical relevance for household well being and policy intervention. This paper leverages Italian income tax records dating back to 1976 focusing on top income concentration and inequality across the country’s regions, macro-areas, and the recently introduced classification of the National Strategy for Inner Areas (SNAI). Our analysis reveals a persistent rise in income concentration over the past few decades, particularly among the top earners, while also highlighting nuanced regional and sub-regional dynamics. Notably, city size plays a crucial role, with larger cities experiencing a more pronounced level of income concentration compared to smaller ones. Southern regions exhibit lower income concentration levels among the top income groups, emphasizing the need for disaggregated analyses to capture these complexities accurately.
    Keywords: Income Inequality; Top Income Shares; Italy; Inner Areas; Spatial Inequality; Income Tax Data; National Accounts
    Date: 2024–06–20
    URL: https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/16&r=

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