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Title:Creative professionals and high-skilled agents: Polarization of employment growth? PDF Logo
Authors:Wedemeier, Jan
Issue Date:2012
Series/Report no.:HWWI research paper 119
Abstract:The creative sector is frequently regarded as one of the driving forces of total employment growth. Empirical studies suggest that the clustering of human capital might result in the polarization of employment growth. Since the creative sector's definition is motivated from the insights of the economics of human capital, this effect might also be relevant to the creative sector. Following these ideas, the objective of the present paper is to analyze the impact of the creative sector on total employment and on creative sector's employment growth in Western Germany's regions from 1977 to 2004. For the analysis, the definitions of the creative sector follow a technologically and culturally oriented definition and, alternatively, Florida's creative class (2002). These approaches focusing on human capital are contrasted with a skill-based approach. Using a fixed-effects panel model with time lags, I find evidence that the creative sector fosters the regional growth rate of total employment. The results show, moreover, that an initially large share of regional creative professionals pushes further the regional concentration of those professions in agglomerated regions. Driving force for the concentration of creative professionals are local amenities, measured by bohemians, and it is assumed that knowledge spillovers - possibly accelerated by the diversified composition of employment - contribute to this polarization. These results are as well confirmed for the high-skilled agents.
Subjects:regional employment growth
creative sector
human capital
bohemians
externalities
JEL:J21
J24
R11
Z1
Document Type:Working Paper
Appears in Collections:HWWI Research Papers, Hamburgisches WeltWirtschaftsInstitut

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