25 Years IWH

Diversifikation und regionale Wirtschafts- und Beschäftigungsentwicklung - Eine empirische Analyse für ausgewählte deutsche Gebiete

This article analyses the effects of heterogeneous economic structures on the long-term development of regional employment. A simple model is introduced to illustrate the beneficial outcomes for households as well as for enterprises of locating in highly diversified municipalities because risk (volatility of income, recruitment costs in a broader sense) diminishes for both. Econometric results for a sample of municipalities in Lower Saxony provide some evidence for a positive effect of local economic diversification on employment opportunities. The results seem to be not confined to the aggregated local labour demand but also apply to most branches the local business sector.

01. January 2004

Authors Peter Haug

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