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Title:Regional dependencies in job creation: an efficiency analysis for Western Germany PDF Logo
Authors:Fahr, René
Sunde, Uwe
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1660
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.
Subjects:regional unemployment
stochastic frontier
matching function
spatial autocorrelation
JEL:J61
J64
J21
R12
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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