Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146139
Authors: 
Eder, Christoph
Year of Publication: 
2016
Series/Report no.: 
Working Papers in Economics and Statistics 2016-22
Abstract: 
A shock to the sector composition of the local labor market can affect long-run economic development of a location. Because structural change ultimately shifts labor from agriculture to services, an early transition to manufacturing may hamper longrun prosperity. The identification strategy exploits military World War II (WWII) casualties in Austrian municipalities as an exogenous shock to the local labor market. WWII casualties shifted labor out of agriculture into manufacturing in the short-run, which eventually led to a di.erential path of structural change. In the long-run, I find a strong and robust negative effect of WWII casualties on subsequent economic output.
Subjects: 
structural change
local labor markets
spatial equilibrium
World War II
Austria
JEL: 
O14
J40
N14
R11
R12
Document Type: 
Working Paper

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