"A problem encountered in many contexts is the estimation of matrices or tables from aggregate, heterogeneous, incomplete and contradictory information. In this paper the Adeton method is presented which can be used for this estimation task under quite general conditions. The Adeton method was originally developed to estimate flow matrices of regional labour markets in the Multi-Accounting System (MAS). However, it is applicable for many purposes, e.g. to estimate contingency tables or input-output and other flow matrices. Adeton is based on a Bayesian inference model: Given a prior probability distribution on the set of possible matrices and information about the actual matrix consisting of a set of linear equality and inequality constraints, the complete matrix with highest posterior probability is calculated. The advantage of the Adeton approach is that it is possible to specify soft constraints which are obeyed only up to a certain degree. It is shown that Adeton is an estimation method of entropy optimization type and in this respect is a generalization of the well known Iterative Proportional Fitting Algorithm (used in log-linear models) or of the equivalent RAS method (used in input-output analysis)."
"Die Autoren stellen eine innovative Methode zur regionalen Arbeitsmarktprognose vor. Diese verbindet zwei bekannte statistische Verfahren, die Regressionsanalyse und die Entropie-Optimierung. Als Datenbasis für eine Ex-Post-Prognose diente ein Panel der Beschäftigung in 11 Wirtschaftszweigen und für 327 Stadt- und Landkreise in Westdeutschland über 11 Jahre (1987-1997). Für den Zeitraum von 1995 bis 1997 wurde die Generalized Extrapolation-Methode (GEM) angewendet und deren Ergebnisse mit der tatsächlichen Entwicklung verglichen. Ihre Prognosegenauigkeit wird als höher bewertet als die herkömmlicher Methoden." (IAB)
"This special issue is devoted to 'Regional Labour Markets', the theme of the 4th International Summer Conference on Regional Science in Dresden in 2011. The conference was organized by the GfR, the German speaking section of the Regional Science Association International (RSAI). Presenters were invited to submit papers to this special issue of PiRS. In addition an international call for papers had been issued."
"The last decade has been shaped by dramatic developments in international trade, international investment and production, both in terms of the scale of events and in terms of their qualitative nature. Intriguing questions have been thrown up concerning the labor market impact of these developments, notably welfare issues (the evolution of real wages, employment and unemployment), the distribution of income (the wage structure) and employment volatility. Path-breaking innovations in the theories of trade, location and the multinational firm allow a fresh look at these labor market effects. This paper takes stock of these theoretical innovations and contrasts these with the recent empirical research efforts to uncover the labor market implications of trade and FDI. We identify research gaps and highlight promising avenues for future research."
"The wage curve postulates that the wage level is a decreasing function of the regional unemployment rate. In testing this hypothesis, most studies have not taken into account that differences in the institutional framework may have an impact on the existence (or the slope) of a wage curve. Using a large-scale linked employer–employee dataset for Western Germany, this article provides a first direct test of the relevance of different bargaining regimes (and of works councils) for the existence of a wage curve. In pooled regressions for the period 1998 to 2006, as well as in worker-level or plant-level fixed-effects estimations, we obtain evidence for a wage curve for plants with a collective bargaining agreement at firm level. The point estimates for this group of plants are close to the −0.1 elasticity of wages with respect to unemployment postulated by Blanchflower and Oswald. In this regime, we also find that works councils dampen the adjustment of wages to the regional unemployment situation. In the other regimes of plants that either do not make use of collective contracts or apply sectoral agreements, we do not find a wage curve."
"Urbanization and localization effects are known to boost the regional economy and its growth potential. The emergence of these effects is due to localized knowledge flows, the closeness to markets, but also due to the diversity of services and industries. All these effects have the potential to increase the productivity (and profitability) of firms. Whereas many studies have been conducted at the industry or the regional level, this paper adds to the existing literature by starting at the level of establishments and taking the interaction with the surrounding regions into account. This is possible by exploiting an exceptionally large establishment panel study and the employment statistics for Germany. The empirical analyses are carried out in two steps regressions in order to separate the characteristics of establishments from regional influences."
"Recent years have seen a tendency towards larger migration flows between many countries. Due to this development the population in the most developed countries in particular is growing increasingly diverse. People with very different cultural backgrounds are living and working together. The social, political and economic implications of this situation are far-reaching, complicated and not completely understood. This paper addresses an important aspect of these implications by looking at the effects of cultural diversity on the labour market. In principle, negative effects can arise from communication problems between people of different cultural backgrounds, from hidden discrimination and even from open clashes. On the other hand, positive effects are possible, since workers from different cultures and nations may possess complementary skills and problem-solving abilities. The intensive interaction of people from different backgrounds can generate ideas and solutions that would not have been developed in culturally homogeneous environments."
The diversity of nationalities of foreign workers in the German labour market has increased considerably over the period 1995–2006. This paper investigates the effects of this diversity for native employees at the local level. The higher is high-skilled foreign employment, the higher are local wages and employment levels for natives. These effects are reinforced the more diverse is the group of high-skilled foreigners. For low-skilled foreigners benefits from diversity are also found, but only conditional on the overall size of this group. These results suggest that cultural diversity benefits native workers by raising local productivity.