Regional dependencies in job creation: an efficiency analysis for Western Germany

This paper investigates the efficiency of the matching process between job seekers and vacancy posting firms in West Germany, using variation across labour market regions and across time. The results of a stochastic frontier analysis shed new light on the extent of and regional differences in search...

Full description

Saved in:
Bibliographic Details
Published in:Applied economics 2006-06, Vol.38 (10), p.1193-1206
Main Authors: Fahr, René, Sunde, Uwe
Format: Article
Language:English
Subjects:
Efficiency
Externality
Job creation
Labor market
Stochastic models
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper investigates the efficiency of the matching process between job seekers and vacancy posting firms in West Germany, using variation across labour market regions and across time. The results of a stochastic frontier analysis shed new light on the extent of and regional differences in 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 labour markets: matching efficiency decreases with spatial autocorrelation in hiring, implying indirect evidence for crowding externalities.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036840600685140