Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313752 
Year of Publication: 
2025
Citation: 
[Journal:] Growth and Change [ISSN:] 1468-2257 [Volume:] 56 [Issue:] 1 [Article No.:] e70011 [Publisher:] Wiley Periodicals, Inc. [Place:] Hoboken, NJ [Year:] 2025
Publisher: 
Wiley Periodicals, Inc., Hoboken, NJ
Abstract: 
This article provides a comprehensive analysis of how regional changes in the age and education distribution of the labour force affect local and neighbourhood unemployment rates. Based on theoretical considerations, we argue that differences in job search, separation, and commuting are key factors in group differences, and therefore, changes in relative group size affect the level of unemployment. The empirical analysis focuses on local labour markets in Germany, using a dynamic spatial panel data model. According to the estimates, an increasing proportion of young and/or low‐educated workers raises local unemployment, while larger proportions of older prime‐age and/or highly educated workers raise unemployment in neighbouring labour markets. As a result, the recent ageing and education developments in the German labour force have led to a 25% reduction in the unemployment rate.
Subjects: 
ageing
human capital
labour mobility
regional unemployment
spatial interactions
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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