We show that every time a local economy generates a new job by attracting a new business in the traded sector, a significant number of additional jobs are created in the non-traded sector. This multiplier effect is particularly large for jobs with high levels of human capital and for high tech...

Theories in regional science predict that related establishments benefit from their mutual proximity due to forward-backward linkages, labor market pooling and knowledge spillovers (the Marshallian forces). While the existence of these externalities as a whole is well supported by the empirical...

It is important to understand how labour markets in different regions are affected by 'common' or ‘national' shocks including national macroeconomic, monetary and fiscal policies. This paper applies a new econometric approach - involving an unobserved components model - to identify the...

Despite its rather broad goal of promoting 'economic, social and territorial cohesion', the existing literature has mainly focused on investigating the Cohesion Policy's growth effects. This ignores the fact that part of the EU expenditures is directly aimed at reducing disparities in the...

It is widely believed that unaffordable housing could drive businesses away and thus impede job growth. However, there is little evidence to support this view. This paper presents a simple model to clarify how housing affordability is linked to employment growth and why unaffordable housing...

This paper studies a spatial pattern and a possible channel of local labor market inequality change. That is, large cities have the greater losses in the declining industries and greater gains in the growing industries. When the declining and growing industries are low-skilled and high-skilled...

This paper measures the volatility of manufacturing employment growth across Canadian regions for the period 1976-97. It also attempts to relate the structural characteristics of regional economies to their levels of employment volatility. In particular, the analysis focuses on testing whether...

This article analyses how regional employment growth in Germany is affected by related variety, unrelated variety and the functions a region performs in the production process. Following the related variety literature, we argue that regions benefit from the existence of related activities that...

Despite its rather broad goal of promoting "economic, social and territorial cohesion", the existing literature has mainly focused on investigating the Cohesion Policy's growth effects. This ignores the fact that part of the EU expenditures is directly aimed at reducing disparities in the...

Demographic change is expected to affect labour markets in very different ways on a regional scale. The objective of this paper is to explore the spatio-temporal patterns of recent distributional changes in the workers age structure, innovation output and skill composition for German regions by...