Structural change and regional employment dynamics

  • A casual look at regional unemployment rates reveals that there are vast differences, which cannot be explained by different institutional settings. Our paper attempts to trace these differences in the labor market performance back to the regions' specialization in products that are more or less advanced in their product cycle. The model we develop shows how individual profit and utility maximization endogenously yields higher employment levels in the beginning. In later phases, however, employment decreases in the presence of process innovation. Our model suggests that the only way to escape from this vicious circle is to specialize in products that are at the beginning of their "economic life". The model is based on an interaction of demand and supply side forces.

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Metadaten
Author details:Uwe BlienGND, Helge SannerGND
URN:urn:nbn:de:kobv:517-opus-14425
Publication series (Volume number):Volkswirtschaftliche Diskussionsbeiträge (82)
Publication type:Working Paper
Language:English
Publication year:2006
Publishing institution:Universität Potsdam
Release date:2007/06/22
RVK - Regensburg classification:QD 100
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften
DDC classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
External remark:Blien, Uwe: Structural change and regional employment dynamics / Uwe Blien ; Helge Sanner. - Potsdam : Univ., 2006. - 22 Bl. : graph. Darst.
(Volkswirtschaftliche Diskussionsbeiträge : Diskussionsbeitrag ; 82)
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