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It is dealt with disparities in employment growth, unemployment, and wages between regional labor markets in Germany. First, endogenous formation and growth of industry locations due to agglomeration economies is established as a basic source of disparity in employment. Then, spatial frictions and local wage inflexibility due to central wage bargaining are detected as causes of unemployment disparities. Throughout the book theoretical analysis is combined with rigorous empirical testing using a large set of regional data at district level. In order to gain and robustify empirical results, recent methods in panel econometrics and spatial data analysis are employed. An overview on the extent of key regional labor market disparities in Germany is given. The book enables to assess our current understanding of the role of locational issues in causing those disparities, and thus to understand the basic justification of regional policy.
List of contents
1 Introduction.- 2 Employment in an Interregional Equilibrium.- 3 Employment Location in German Manufacturing.- 4 Interregional Migration in Germany.- 5 Regional Wage Formation.- 6 Regional Wage Flexibility in Germany.- 7 Summary and Outlook.- A Appendix.- I Sources and Definitions of Data Used in Chapter 1.- I.1 Data on Employment Change.- I.2 Data on Unemployment.- II Sources and Definitions of Data Used in Chapter 3.- II.1 General District Level Data.- II.2 District Level Data for Manufacturing Industries.- II.3 Other Data.- III Sources and Definitions of Data Used in Chapter 4.- III.1 State Level Data.- III.2 District Level Data.- III.3 Data at the Level of the Planning Regions.- III.4 Further Data.- IV Sources and Definitions of Data Used in Chapter 6.- V Abbreviations in the Text.- VI Tables.- List of Tables.- List of Figures.- References.
