|
on Urban and Real Estate Economics |
| By: | Katharina Pijnenburg |
| Abstract: | Spatial heterogeneity and spatial dependence are two well established aspects of house price developments. However, the analysis of differences in spatial dependence across time and space has not gained much attention yet. In this paper we jointly analyze these three aspects of spatial data. We apply a panel smooth transition regression model that allows for heterogeneity across time and space in spatial house price spillovers and for heterogeneity in the effect of the fundamentals on house price dynamics. We find evidence for heterogeneity in spatial spillovers of house price developments across space and time: house price developments in neighboring regions spill over stronger in times of increasing neighboring house prices compared to declining neighboring house prices. This is interpreted as evidence for the disposition effect. Moreover, heterogeneity in the effect of the fundamentals on house price dynamics could not be detected for all variables; real per capita disposable income and the unemployment rate have a homogeneous effect across time and space. |
| Keywords: | Heterogeneity in spatial dependence, Panel smooth transition regression, housing prices, disposition effect |
| JEL: | C23 R12 R31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1270&r=ure |
| By: | Pierre-Philippe Combes (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579); Sylvie Démurger (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Shi Li (School of Economics and Business Administration - School of Economics and Business Administration - Beijing Normal University) |
| Abstract: | We evaluate the role that cities play on individual productivity in China. First, we show that location explains a large share of nominal wage disparities. Second, even after controlling for individual and -firms characteristics and instrumenting city characteristics, the estimated elasticity of wage with respect to employment density is about three times larger than inWestern countries. Land area and industrial specialisation also play a significant role whereas the access to external markets does not. Therefore, large agglomeration economies prevail in China and they are more localised than in Western countries. Third, we -find evidence of a large positive impact of the local share of migrants on local workers'wages. Overall, these results strongly support the productivity gains that can be expected from further migration and urbanisation in China. |
| Keywords: | urban development; agglomeration economies; wage disparities; migration; China |
| Date: | 2013–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00786107&r=ure |
| By: | Arthur Grimes (Motu Economic and Public Policy Research); Sean Hyland (Motu Economic and Public Policy Research); Andrew Coleman (New Zealand Treasury); James Kerr (Ministry of Business, Innovation and Employment); Alex Collier (Ministry of Business, Innovation and Employment) |
| Abstract: | The New Zealand Regional Housing Model (NZRHM) includes estimated equations for four key housing market variables: house prices, housing supply (new dwelling consents), residential vacant land (lot) prices, and average rents. Long run (cointegration) relationships and short run (error correction) relationships are estimated for each of these variables across 72 TLAs within New Zealand. The model is designed so that it can be used for short to medium term forecasting. It is also useful for simulating the effects of shocks to the housing market. The paper presents simulations of the impacts of shocks to exogenous variables (population, credit restrictions, construction costs and farm prices) as well as shocks to policy variables (developer contributions, accommodation supplement, and land availability). We also simulate the consequences of the Christchurch earthquakes for Canterbury housing outcomes. The over-arching conclusion across all simulations is that housing markets are very slow to adjust to disequilibria, such that exogenous shocks have very long lasting effects on prices and the housing stock. |
| Keywords: | house prices, housing supply, lot prices, rents, housing model |
| JEL: | R21 R31 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:13_02&r=ure |
| By: | Miriam Hortas Rico (Universidad Complutense de Madrid & IEB) |
| Abstract: | US post-war suburbanization has reshaped the spatial pattern of growth in many metropolitan areas, with population and employment shift toward the suburbs resulting in the urban decay of central cities. This being the case, the adoption of adequate anti-sprawl policies should lead to a reduction in city blight. Availability of detailed blight measures at the city level enables us to undertake a novel empirical analysis to test this hypothesis. The empirical specification presented here identifies the specific impact of more stringent anti-sprawl policies adopted at the metro-level, proxied by the adoption of urban containment policies, on city blight. Results indicate that the adoption of such policies have effectively contributed to the reduction of downtown deterioration. |
| Keywords: | Blight, urban sprawl, urban containment policies |
| JEL: | R14 R30 R52 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-2&r=ure |
| By: | Dovern Jonas; Quaas Martin; Wilfried Rickels |
| Abstract: | We develop a comprehensive wealth index for cities that measures their endowment with environmental, energy, social, human, and economic capital stocks. We apply this index to the 100 largest autonomous cities in Germany. We find that (i) a good economic performance does not need to come at the cost of environmental degradation; (ii) clear regional differences exist between West and East Germany and between North and South Germany; and (iii) social preferences reflected in the comprehensive wealth index account for roughly half of the variation in housing rents, which reflect individual willingness to pay for living in a certain city |
| Keywords: | comprehensive wealth, city, social preferences |
| JEL: | Q56 R11 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1828&r=ure |
| By: | Hanna Augustyniak (National Bank of Poland, Economic Institute); Laszek Jacek (National Bank of Poland, Economic Institute; Warsaw School of Economics); Krzysztof Olszewski (National Bank of Poland, Economic Institute); Joanna Waszczuk (National Bank of Poland, Economic Institute) |
| Abstract: | While analysing the housing market, we focus on the short-term modelling of the housing units market instead of analysing the long-term housing space market. In this context, even a minor change in factors affecting the real estate market leads, due to the multiplier effect, to strong shocks on the demand side, and, consequently, to an excessive reaction of the supply side. These shocks, depending on the price elasticity of supply and demand, may disappear or explode. This articles presents the modelling of cycles in the residential real estate market. We focus on price changes and the number of housing units in the primary and secondary market. We find that in order to smooth the housing cycle, the housing demand needs to be smoothed. This can be achieved with the use of fiscal policy, prudential regulations and housing policy. |
| Keywords: | Housing market cycles; disequilibrium; banking sector; regulation |
| JEL: | E32 E44 E37 R21 R31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:143&r=ure |
| By: | Florent Buisson (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne) |
| Abstract: | In an often quoted article, Genesove and Mayer (2001) observe that house sellers are reluctant to sell at a loss, and attribute this finding to loss aversion. I show that loss aversion cannot explain this phenomenon. |
| Keywords: | Loss aversion; prospect theory; housing market |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00786294&r=ure |
| By: | María Sánchez-Vidal (Universitat de Barcelona & IEB); Rafael González-Val (Universidad de Zaragoza & IEB); Elisabet Viladecans-Marsal (Universitat de Barcelona & IEB) |
| Abstract: | We provide empirical evidence of the dynamics of city size distribution for the whole of the twentieth century in U.S. cities and metropolitan areas. We focus our analysis on the new cities that were created during the period of analysis. The main contribution of this paper, therefore, is the parametric and nonparametric analysis of the population growth experienced by these new-born cities. Our results enable us to confirm that, when cities appear, they grow very rapidly and, as the decades pass, their growth slows or even falls into decline. This is consistent with the theoretical framework regarding mean reversion (convergence) in the steady state and with the theories of sequential city growth. |
| Keywords: | Cities, sequential city growth, city size distribution |
| JEL: | O18 R11 R12 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-1&r=ure |
| By: | Miquel- Àngel Garcia-López (Universitat Autònoma de Barcelona & IEB); Adelheid Holl (CSIC, Institute for Public Goods and Policies); Elisabet Viladecans-Marsal (Universitat de Barcelona & IEB) |
| Abstract: | We estimate the effects of highways on the suburbanization of Spanish cities. First, we extend previous findings for the US and China by providing evidence for Europe: each additional highway ray built between 1991 and 2006 produced a 5 per cent decline in central city population between 1991 and 2011. Second, our main contribution is at the intrametropolitan level. We find that highway improvements influence the spatial pattern of suburbanization: suburban municipalities that were given improved access to the highway system between 1991 and 2006 grew 4.6% faster. The effect was most marked in suburbs located at 5–11 km from the central city (7.1%), and concentrated near the highways: population spreaded out along the (new) highway segments (4.7%) and ramps (2.7%). To estimate the causal relationship between population growth and highway improvements, we rely on an IV estimation. We use Spain’s historical road networks – Roman roads, 1760 main post roads, and 19th century main roads – to construct our candidates for use as instruments. |
| Keywords: | Suburbanization, highways, transportation infrastructure |
| JEL: | R4 O2 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-5&r=ure |
| By: | Hernán Enríquez Sierra; Jacobo Campo Robledo |
| Abstract: | This paper analyzes the migration dynamics in the Americas from 1960 to 2005 using an equilibrium approach. Using recent spatial econometrics techniques, the migration flow is evaluated, controlling for the labor mobility effect and regional wages. Additionally, the estimated model looks for variations in migration by taking into account the distinctive population features in each country, namely the working age population, unemployment rate and relative wages. The estimated model shows that the spatial equilibrium related to net migration is negatively affected by wages and positively influenced by labor supply in the region. |
| Date: | 2013–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:col:000462:010478&r=ure |
| By: | Marco Bertoni; Giorgio Brunello; Lorenzo Rocco |
| Abstract: | We use a natural experiment to show that the presence of an external examiner has both a direct and an indirect negative effect on the performance of monitored classes in standardized educational tests. The direct effect is the difference in the test performance between classes of the same school with and without external examiners. The indirect effect is the difference in performance between un-monitored classes in schools with an external examiner and un-monitored classes in schools without external monitoring. We find that the overall effect of having an external examiner in the class is to reduce the proportion of correct answers by 5.5 to 8.5% - depending on the grade and the test - with respect to classes in schools with no external monitor. The direct and indirect effects range between 4.3 and 6.6% and between 1.2 and 1.9% respectively. Using additional supporting evidence, we argue that the negative impact of the presence of an external examiner on measured test scores is due to reduced cheating (by students and/or teachers) rather than to the negative effects of anxiety or distraction from having a stranger in the class. |
| Keywords: | Education, testing, external monitoring, indirect treatment effects |
| JEL: | C31 H52 I2 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1191&r=ure |
| By: | Schricke, Esther |
| Abstract: | The aim of this article was to investigate how far clusters in knowledge-intensive service industries have developed and what kind of agglomeration advantages they generate. Therefore the first step was to analyse which knowledge-intensive service industries exhibit spatial concentration. Based on this analysis, the absolute as well as the relative concentrations in these industries was examined at the NUTS 3 level. The results show that cluster structures have developed in some but not all knowledge-intensive industries of the service sector. A high measure of spatial concentration does not necessarily mean that a cluster exists, since especially in less urban region high localisation quotients are frequently ascribed to either one company or only a small number of companies. The knowledge-intensive services with cluster structures differ with regard to external effects, each of which becomes important: a highly qualified labour pool is by definition important for all knowledge-intensive industries of the service sector and fundamental for the existence of cluster structures in each of the examined services. Nevertheless there are however crucial differences regarding the significance of further external effects. Porter-externalities do not appear to stimulate competiveness in any of the examined industries of the service industry. However, none of the available studies explicitly examined the aspect of competition. Thus the interplay of agglomeration advantages needs to be researched further. The type of knowledge and the market environment should also be regarded as important factors (Orsenigo 2006: 201). Contact to local suppliers and customers in industries that are characterized by project work, such as the film and television industry or the media, are particularly important. Supporting clusters and networks is currently fashionable and is practised by different actors. The results show that cluster and network policies have to be focussed on the field of activity. It seems in any case sensible to expand the knowledge and education infrastructure in knowledge-intensive services which do not have cluster structures. The spatial proximity of actors in the innovation process or of suppliers and customers is not always advantageous. Too strong a focus on spatially concentrated exchange processes, leading to an isolation from global trends, can prove to have negative effects in the long term. In this respect the great importance of a qualified labour pool provides a starting point for policy measures that could also be useful for other fields of activity. This includes the development and financing of (partially specialised) educational institutions or measures. The appeal of the surroundings is also important to tie highly qualified staff to a region, as the discussion on a creative class (Florida 2002; 2005) also shows. While factors such as urbanity can hardly be influenced politically, there are certain initiatives regions can adopt to compensate for the lack of attractiveness. In regions where companies find it difficult to attract qualified staff from other regions higher education institutions are important sources of qualified staff. Therefore increasing the attractiveness of higher education institutions and of relevant study programmes are a first starting point. Likewise, the example of ITsax shows how companies can cooperate successfully in the area of recruitment. Furthermore, the provision of childcare facilities or international schools is important for the creation of attractive conditions particularly for women and / or international employees. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r12013&r=ure |
| By: | Aaron Chalfin; Justin McCrary |
| Abstract: | We argue that the key impediment to accurate measurement of the effect of police on crime is not necessarily simultaneity bias, but bias due to mismeasurement of police. Using a new panel data set on crime in medium to large U.S. cities over 1960- 2010, we obtain measurement error corrected estimates of the police elasticity of the cost-weighted sum of crimes of roughly -0.5. The estimates confirm a controversial finding from the previous literature that police reduce violent crime more so than property crime. |
| JEL: | H76 J18 K42 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18815&r=ure |
| By: | Elisabeth Bublitz (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | Being a "jack-of-all-trades" increases the probability of running an entrepreneurial venture successfully; but what happens to "jack-of-few-trades" who lack sufficient skills? This paper investigates a possible compensation mechanism between balanced skills and cities, and how this compensatory measure relates to performance. Specifically, we test and find support for the idea put forward by Helsley and Strange (2011) that high market thickness, such as that found in cities, can compensate for a lack of entrepreneurial skill balance. The results indicate that entrepreneurs with low skill balance benefit more from locating in cities than their counterparts with high skill balance. Innovative firms do not differ from other businesses in this respect. |
| Keywords: | Agglomeration, Entrepreneurship, Balanced Skills, Thick Markets, Urban Diversity |
| JEL: | R1 L26 J24 O31 |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-010&r=ure |
| By: | Fontana, Olimpia; Godin, Antoine |
| Abstract: | This paper focuses on the different balance sheet management behavior of private banks and worker households, when assets are traded in the market. The authors take into consideration the securitization process, through which mortgage loans to households are converted into tradable securities which are held by investment banks in order to make profits. The demand for deposits by speculative households and realized capital gains on selling of mortgage-backed securities in the secondary market produce an inflation balloon in security markets, even though the authors apply the Basel III agreements to private banking behavior. -- |
| Keywords: | securitization,stock-flow consistent modelling,active banking |
| JEL: | E12 G11 E44 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201313&r=ure |
| By: | Edoardo di Porto (EQUIPPE (Universités de Lille) and Sapienza (Universita di Roma)Dipartimento MEMOTEF, Via del Castro Laurenziano 9, 00161 Roma, Italy); Vincent Merlin (CREM CNRS and University of Caen Basse Normandie, 19 rue Bloch 14032 Caen, France); Sonia Paty (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France) |
| Abstract: | Cooperation among local governments has been encouraged to enable the aggregation of resources and improved public sector efficiency. However, if cooperation through the joint delivery of local public services is likely to be welfare enhancing for the agglomeration, but will lead to losses for one of the parties, it is unlikely that the losing municipality will cooperate. Using a unique panel dataset of 30,000 French municipalities for 1995-2003, we estimate the relationship between cooperation decision and the fiscal revenues raised to provide local public goods. We employ a new econometric strategy based on Lee (1978), developing a non linear method controlling for fixed effect, endogenous covariates and cluster standard error. We find evidence that a positive difference between the expected fiscal revenues of a cooperating locality and the actual revenues realized by an isolated locality significantly increases the probability of joining an inter-municipal community. |
| Keywords: | inter-municipal cooperation, fiscal revenues, bivariate response variable, panel data,endogeneity |
| JEL: | C3 H2 H4 H7 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1304&r=ure |
| By: | Steven Levitt; John List; Susanne Neckermann; Sally Sadoff |
| Abstract: | Research on behavioral economics has established the importance of factors such as reference dependent preferences, hyperbolic preferences, and the value placed on non-financial rewards. To date, these insights have had little impact on the way the educational system operates. Through a series of field experiments involving thousands of primary and secondary school students, we demonstrate the power of behavioral economics to influence educational performance. Several insights emerge. First, we find that incentives framed as losses have more robust effects than comparable incentives framed as gains. Second, we find that non-financial incentives are considerably more cost-effective than financial incentives for younger students, but were not effective with older students. Finally, and perhaps most importantly, consistent with hyperbolic discounting, all motivating power of the incentives vanishes when rewards are handed out with a delay. Since the rewards to educational investment virtually always come with a delay, our results suggest that the current set of incentives may lead to under-investment. For policymakers, our findings imply that in the absence of immediate incentives, many students put forth low effort on standardized tests, which may create biases in measures of student ability, teacher value added, school quality, and achievement gaps. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:feb:framed:00379&r=ure |
| By: | Jesus Gonzalez-Feliu (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat); Pascal Pluvinet (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat); Marc Serouge (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat); Mathieu Gardrat (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat) |
| Abstract: | This chapter aims to investigate the contribution of GPS survey techniques for urban goods movement characterization, and to diagnosis the implementation and application issues related to the introduction of real-time data transmission procedures and phone tools with integrated GPS devices. We propose a GPS-based data collection method for urban freight route characterization using a Smartphone application. After testing and calibrating the data processing tool, we analyse the main results on a baseline of about 900 tours with the R software. This chapter defined the characteristics of the overall routes as well as the environmental impacts linked with the categories of roads, urban highways, main roads and residential streets. Moreover, this chapter showed the driver's environmental behaviour was related to the main activity of the carriers. Finally, the complementarity between GPS-surveys and traditional urban freight surveys was discussed. |
| Keywords: | GPS; data collection; urban logistics; state-of-the-art |
| Date: | 2013–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00784079&r=ure |
| By: | Annalisa Caloffi; Federica Rossi; Margherita Russo |
| Abstract: | We contribute to the debate on the assessment of the behavioural effects of policies by investigating which features of policy interventions in support of innovation networks, if any, improve the firms’ ability to form subsequent relationships. In order to do so, we analyse the evolution of dyadic relationships within a set of policy interventions implemented by the Italian region of Tuscany between 2002 and 2008, aimed at supporting innovation projects performed by networks of heterogeneous agents. Our analysis shows that the observed policies have changed the relational pattern of the firms, pushing them to collaborate – often in a stable way – with a number of agents. We find that a large sectoral heterogeneity among agents is generally associated with a lower probability of networking; and that the presence of specialized intermediaries increases the firms’ ability to network with universities. |
| Keywords: | Evaluation; innovation networks; dyadic relationships; behavioural effects; innovation policy |
| JEL: | D85 H43 L14 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:13-07&r=ure |
| By: | Bruhn, Miriam; McKenzie, David |
| Abstract: | Efforts to make it easier for firms to register formally are the most common form of business regulatory reform over the past decade. While there is evidence that large reforms have resulted in some increases in registration rates, recent experimental evidence suggests very few informal firms choose to register when given information about how to do so. This raises the question of whether it is productive for governments to continue to extend simplification efforts to all firms, especially those in more remote areas where many of the benefits of registering may be reduced. This study uses administrative data to evaluate the impact of Minas Facil Expresso, a program in the state of Minas Gerais, Brazil, which attempted to expand a business start-up simplification program to more remote municipalities. Using difference-in-differences with 56 months of registration data for 822 municipalities, the analysis finds introducing these units actually led to a reduction in registration rates, and no change in tax revenues. The paper uses this evaluation to illustrate the design choices and issues involved in using administrative data to evaluate reforms, with the goal of also providing a template that can be used for evaluating similar reforms elsewhere. |
| Keywords: | Corporate Law,Urban Governance and Management,Regional Governance,Municipal Financial Management,Municipal Management and Reform |
| Date: | 2013–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6368&r=ure |
| By: | John Gibson (University of Waikato); David McKenzie (The World Bank) |
| Abstract: | This paper uses a unique survey to examine the nature and extent of knowledge flows that result from the international mobility of researchers whose initial education was in small island countries. Current migrants produce substantially more research than similar-skilled return migrants and non-migrants. Return migrants have no greater research impact than individuals who never migrate but are the main source of research knowledge transfer between international and local researchers. Our results contrast with previous claims in the literature that too few migrant researchers ever return home to have much impact, and that there is no productivity gain to researchers from migration. |
| Keywords: | Diasporas, Knowledge networks, Scientific mobility |
| JEL: | J6 O3 R1 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1305&r=ure |
| By: | Stefanie Peer (VU Amsterdam); Erik T. Verhoef (VU Amsterdam) |
| Abstract: | We consider equilibrium and optimum use of a Vickrey road bottleneck, distinguishing between long-run and short-run scheduling preferences in an otherwise stylized scheduling model. The preference structure reflects that there is a distinction between the (exogenous) 'long-run preferred arrival time', which would be relevant if consumers were unconstrained in the scheduling of their activities, versus the 'short-run preferred arrival time', which is the result of an adaptation of travel routines in the face of constraints caused by, in particular, time-varying congestion levels. We characterize the unpriced equilibrium, the social optimum as well as second-best situations where the availability of the pricing instruments is restricted. All of them imply a dispersed distribution of short-run preferred arrival times. The extent of dispersion in the unpriced equilibrium, however, is higher than socially optimal. |
| Keywords: | bottleneck model; scheduling decisions; travel routines; long-run vs. short-run |
| JEL: | D80 R48 R41 H21 |
| Date: | 2013–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20130028&r=ure |
| By: | Oelgemöller, Jens |
| Abstract: | A major aspect of employment growth is discussed in relation to economic growth. This paper deals with the question as to whether the relationship between economic and employment growth, subsumed under the idiom Verdoorn's Law, holds true at the sectoral level. For this reason, the German labor market is divided into regional functionally delineated labor markets. The employees are differentiated into sectoral affiliation, education, national status and part-time employment. The economy is split into six sectors. The labor demand function is derived from the cost-function of companies, and factor prices (interest rates and wages) are considered. It is evident that the construction sector still has intense connections to the labor market concerning output changes. This cannot be verified in the finance, insurance and service sector. Part-time work increased during the economic crisis. The elasticity to factor-prices holds true for most types of employment. It is found that, regional labor market performance is directly linked to industrial structure. The fixed an random-effects estimations used here deliver satisfying results to most investigations. However, some concerns about the results regarding characteristics of employees remain. -- |
| Keywords: | Verdoorn,sectoral growth,regional growth,employment elasticity |
| JEL: | J21 J23 O11 R11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:63&r=ure |