Secretariat

Anja Herkner
Institute of Rural Studies

Bundesallee 64
38116 Braunschweig
Phone: +49 531 596 5501
Fax: +49 531 596 5599
lr@thuenen.de


Economic effects of the spatially uneven distribution of workers as well as firms

Project

Germany - Night (c) Guillaume Le Bloas - stock.adobe.com
Light intensity at night illustrating the spatially uneven distribution of (economic) activity in Germany (© Guillaume Le Bloas - stock.adobe.com)

In Germany pronounced regional disparities with regard to economic strength exist. They show up, i.a., between rural and urbanised regions. Therefore, we analyse the impact of the spatially uneven distribution of workers and firms on their economic success in terms of productivity and the generation of innovations, respectively.

Background and Objective

In Germany the economic activity is highly uneven distributed across space. At the same time, there exist pronounced regional disparities with regard to economic indicators. Especially rural regions are often characterised by a regional wage level that is below the national average and relatively low innovation rates.

 This project aims at providing new insights with regard to the reasons for the differences between rural and urbanised regions with regard to economic power by analysing the impact of the spatially uneven distribution of economic activity on workers and firms and the underlying mechanisms. Of particular interest is its impact on labour productivity and the generation of innovations.

Approach

Based on secondary data from the Institute for Employment Research (IAB), we analyse whether wages and innovation rates of firms are affected by characteristics of the local labour market applying micro econometric estimation techniques. Of particular interest is the importance of the size of the local labour market and of the locally available amount of high-skilled labour.

Data and Methods

We make use of micro-data from the Institute for Employment Research (IAB), in particular of the Integrated Employment Biographies (IEB) and the IAB Establishment Panel, with detailed information on individual employment relationships, workers, and firms. These data is merged with information referring to the regional level like characteristics of the local labour market.

Our Research Questions

  • How important is the size of the local labour market for the regional productivity and wage level and what are the underlying mechanisms?
  • To which extent does the success of firms with regard to the generation of innovations depend on the regional context, in particular on the proximity to other firms and on the local availability of high-skilled labour?

Preliminary Results

We expect new insights with regard to the importance of the regional context for individual labour productivity and the competitiveness of firms.

Links and Downloads

Project at the IAB: www.iab.de/138/section.aspx/Projektdetails/k161012304

Thünen-Contact


Involved external Thünen-Partners


Duration

11.2016 - 12.2019

More Information

Projekt type:
Project status: ongoing

Publications to the project

hits: 4

  1. Hamann S, Niebuhr A, Peters JC (2019) Does the urban wage premium differ by pre-employment status? Reg Stud 53(10):1435-1446, DOI:10.1080/00343404.2019.1577553
  2. Peters JC (2019) Dynamic agglomeration economies and learning by working in specialised regions. J Econ Geogr:in Press, DOI:10.1093/jeg/lbz022
  3. Niebuhr A, Peters JC, Schmidke A (2019) Spatial sorting of innovative firms and heterogeneous effects of agglomeration on innovation in Germany. J Technol Transfer:in Press, DOI:10.1007/s10961-019-09755-8
  4. Peters JC (2017) Quantifying the effect of labor market size on learning externalities. Braunschweig: Johann Heinrich von Thünen-Institut, 52 p, Thünen Working Paper 74, DOI:10.3220/WP1502798530000
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