Regional Dependencies in Job Creation: An Efficiency Analysis for Western Germany
Series
IZA - Discussion papers
Type
discussion paper
Date Issued
2005-07-01
Author(s)
Sunde, Uwe
;
Fahr, René
Abstract
This paper investigates the efficiency of the matching process between job seekers and vacancy posting firms in West-Germany, using variation across labor market regions and across time. The results of a stochastic frontier analysis shed new light on extent and regional differences of search frictions, on potential determinants of frictional inefficiencies and on the consequences of German reunification for the matching process. The paper also presents novel evidence on the complex interactions between spatial contingencies among regional labor markets: matching efficiency decreases with spatial autocorrelation in hiring, implying indirect evidence for crowding externalities.
Language
English
Keywords
regional unemployment
stochastic frontier
matching function
spatial autocorrelation
HSG Classification
contribution to practical use / society
Refereed
Yes
Publisher
IZA
Publisher place
Bonn, Deutschland
Number
1660
Start page
34
Subject(s)
Division(s)
Eprints ID
71721