Interaction of public and private employment: evidence from a German government move

"We use the German government move from Bonn to Berlin in 1999 to test competing views about the impact of public employment on private sector activity in a local labor market. A relocated public sector job might create new jobs in an area as it increases demand for locally-produced goods and s...

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Bibliographic Details
Main Authors: Faggio, Giulia, Schlüter, Teresa, vom Berge, Philipp
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: London 2018
LSE
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19397983124911151659-interaction-of-public-and-priv.htm
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author Faggio, Giulia
Schlüter, Teresa
vom Berge, Philipp
author_facet Faggio, Giulia
Schlüter, Teresa
vom Berge, Philipp
collection Library items
description "We use the German government move from Bonn to Berlin in 1999 to test competing views about the impact of public employment on private sector activity in a local labor market. A relocated public sector job might create new jobs in an area as it increases demand for locally-produced goods and services, or crowd out existing jobs due to upward pressure on housing rents. Using employment data from a panel of a 50% sample of establishments across 190 Berlin postcodes, we apply a treatment intensity approach which takes the possibility of spillovers into account. Results indicate that the arrival of 100 public sector jobs into an area generates 55 additional jobs in the private sector. There is evidence of spillovers: relocations up to a distance of 1km from a postcode boundary increases employment in the private sector by 36 jobs. These effects are coming through job gains in the service sector, while manufacturing employment is not influenced by the relocation. "
format TEXT
geographic Germany
id 19397983124911151659_d9c9f87cb14d4c25913c136b2c6b83b2
institution ETUI-European Trade Union Institute
is_hierarchy_id 19397983124911151659_d9c9f87cb14d4c25913c136b2c6b83b2
is_hierarchy_title Interaction of public and private employment: evidence from a German government move
language English
physical 52 p.
Digital
publishDate 2018
publisher London
LSE
spellingShingle Faggio, Giulia
Schlüter, Teresa
vom Berge, Philipp
public sector
employment
local level
labour market
regional government
regional development
Interaction of public and private employment: evidence from a German government move
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=131867995904
title Interaction of public and private employment: evidence from a German government move
topic public sector
employment
local level
labour market
regional government
regional development
url https://www.labourline.org/KENTIKA-19397983124911151659-interaction-of-public-and-priv.htm