Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/124024
Authors: 
Becker, Sascha
Heblich, Stephan
Sturm, Daniel
Year of Publication: 
2013
Series/Report no.: 
53rd Congress of the European Regional Science Association: "Regional Integration: Europe, the Mediterranean and the World Economy", 27-31 August 2013, Palermo, Italy
Abstract: 
This paper evaluates the impact of relocations of public employment across cities on private sector activity. To identify the effect of changes in public employment on the private sector, we exploit the relocation of the German Federal Government from Berlin to Bonn in the wake of the Second Word War as a source of exogenous variation. In line with the predictions of a standard economic geography model we ...nd that an increase in public employment puts downward pressure on private sector employment. We provide evidence that this negative impact is driven by changes in wages and rents which are consistent with the mechanisms of the model.
Subjects: 
Public Employment
Crowding Out
Economic Geography
German Division
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.