Industrial Structure and Regional Employment Dynamics
Is there a relationship between a region's industrial structure and employment growth? Wolfgang Dauth pursues this question in three self-contained studies. These studies each examine a different aspect of this topic and form the three main chapters of this book.
Chapter 2 ("Agglomeration and regional employment dynamics") documents the significance of positive agglomeration externalities for regional labor markets. Employment growth is more sustainable in industrial agglomerations than in other local industries.
In Chapter 3 ("The mysteries of trade"), the sources of agglomeration externalities are explained through linkages between different, but related, industries. The main conclusion is that labor market pooling plays a key role.
In Chapter 4 ("The rise of the East and the Far East"), Dauth examines how regional labor markets with differing industrial structures react to increasing exposure to international trade. He shows that Germany as a whole has experienced substantial gains in employment due to the economic rise of China and Eastern Europe.