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The paper argues that economic integration causes problems for the labor market of high-wage countries due to cross-border labor mobility and the accompanying increase in labor supply. Empirical evidence is provided from an analysis of regional labor market effects of German re-unification. In...
Persistent link: https://www.econbiz.de/10011402446
process. Our main finding is that city growth in western Germany did not follow a random walk, while city growth in eastern … Germany did follow a random walk. Different post-war economic systems are most likely responsible for this outcome. …
Persistent link: https://www.econbiz.de/10011514015
Regional productivity differences provide scope for productivity-enhancing labor mobility. Redistribution reduces relocation incentives through higher taxes or lower transfers. Combining an intensive labor supply margin with an extensive, productivity-enhancing migration margin, we determine how...
Persistent link: https://www.econbiz.de/10010469268
-unification Germany. We find support for a spatial wage structure for German city-district wages, and hence indirectly for the relevance … of a new economic geography model for Germany. We also find that demand linkages in Germany are strongly localised and … that the old border still matters to the extent that economic interactions between western and eastern Germany are still …
Persistent link: https://www.econbiz.de/10009780204
We study the link between subnational capital cities and urban development using a global data set of hundreds of first-order administrative and capital city reforms from 1987 until 2018. We show that gaining subnational capital status has a sizable effect on city growth in the medium run. We...
Persistent link: https://www.econbiz.de/10012652841
Distance related variables typically vary in a cross-section dimension but less so in a time dimension across cities, regions, or countries. The enlargement of the EU or the introduction of the euro, however, can be looked upon as integration shocks that are informative of the consequences of...
Persistent link: https://www.econbiz.de/10009009598
This paper analyses the effect of international borders and of trade agreements at international borders on subnational (i.e. regional) growth. We construct an extensive panel dataset covering 1,350 regions in 86 countries worldwide between 1950 and 2017. Our results show that international...
Persistent link: https://www.econbiz.de/10012533891
We study the local favoritism of appointed German state ministers. Matching hand-collected data on ministers' place of residence to a sample of more than 8,000 west German municipalities during the period 1994-2013, we find that the home municipality of a state minister experiences higher...
Persistent link: https://www.econbiz.de/10011778673
implications of this policy. Calibrating the model for Germany, we find that it indeed delivers smaller spatial economic …
Persistent link: https://www.econbiz.de/10011844560
Lumpiness of production factors within a country might overturn the predictions for the structure of trade by the factor-abundance (HO) model. Trade patterns, as predicted by this model, can both be magnified or reversed by uneven concentration of production factors within a country. Cities are...
Persistent link: https://www.econbiz.de/10009387234