Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130759
Authors: 
Hamann, Silke
Niebuhr, Annekatrin
Peters, Jan Cornelius
Year of Publication: 
2016
Series/Report no.: 
Economics Working Paper, Christian-Albrechts-Universität Kiel, Department of Economics 2016-07
Abstract: 
We analyse whether the size of the local labour market allows for better matching between job seekers and vacancies, which is thought to enhance productivity. This analysis is based on a large data set providing detailed micro-level information on new employment relationships in Germany. Our results suggest rather small matching benefits. Doubling employment density increases the productivity of new employment relationships by 1.1% to 1.2%. Moreover, the findings indicate that the benefits accrue only to persons experiencing job-to-job transitions and short-term unemployed. We detect no important impact of agglomeration on transitions from long-term non-employed.
Subjects: 
agglomeration economies
matching
urban wage premium
transitions to employment
JEL: 
R23
J31
Document Type: 
Working Paper

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