In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not...

In this paper we take a detailed look at the sectoral anatomy of regional growth in German regions over the period 1978-2008. In the aggregate, the German economy is characterized by a secular decline of the manufacturing sector and a rise of the modern service economy. This trend of structural...

In most industrialized countries, employment has grown predominately in jobs at the upper and lower tails of the wage distribution, while employment in the middle part of the distribution has stagnated or declined. This process of job polarization is well documented for a number of countries. We...

This paper examines job polarization at the level of local labor markets in Germany over a 30-year period. The major explanation of job polarization is skill biased technological change (SBTC): new technologies are complementary to high paying jobs but substitute workers in routine manual jobs...

Für einen angemessenen Vergleich der einzelnen Arbeitsagenturen ist immer auch die regionale Arbeitsmarktsituation zu berücksichtigen. Dies wird durch die Typisierung der Agenturbezirke durch das Institut für Arbeitsmarkt- und Berufsforschung (IAB) ermöglicht. Damit kann die Bundesagentur...

Theorien der Regionalforschung sagen voraus, dass Betriebe von ihrer gegenseitigen räumlichen Nähe profitieren, wenn sie in einer Lieferbeziehung stehen, einen gemeinsamen Arbeitsmarkt haben, oder es zur Übertragung von Wissen kommt (die drei Marshall'schen Kräfte). Während die Existenz...

This paper contributes to the literature on macroeconometric evaluation of active labour market policies (ALMP) by considering the regional effects on both the matching process and the job-seeker rate. We use an unique new data set on all Austrian job-seekers between 2001 to 2007 and apply GMM...