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.
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.
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.
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.
We expect new insights with regard to the importance of the regional context for individual labour productivity and the competitiveness of firms.
Project at the IAB: www.iab.de/138/section.aspx/Projektdetails/k161012304
11.2016 - 12.2019
Project status: ongoing