Commuter Effects on Local Labour Markets: A German Modelling Study

Tinbergen Institute Discussion Paper 11-114/3

28 Pages Posted: 11 Aug 2011

See all articles by Giovanni Russo

Giovanni Russo

VU University Amsterdam; IZA Institute of Labor Economics

Federico Teschi

University of Bologna

Aura Reggiani

University of Bologna - Department of Economics

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics; Tinbergen Institute

Date Written: August 11, 2011

Abstract

This paper offers an exploratory investigation of the effects of inbound commuter flows on employment in regional labor markets in Germany. For this purpose, we distinguish three main channels that may transmit the effects concerned: a crowding-out mechanism, and two labor demand effects, namely, an aggregate demand effect and a positive externality on vacancy creation. To this end, we develop a stepwise commuting impact model. Our results bring to light that, on the whole, commuter flows have a positive and robust effect on both employment and the number of jobs in the receiving labor market districts, but a distinctly negative effect on the share of jobs filled by resident workers. We then interpret the implications of our results, and, finally, we suggest ways in which the analysis could be improved and expanded.

Keywords: commuter flows, local labour markets

JEL Classification: J21

Suggested Citation

Russo, Giovanni and Teschi, Federico and Reggiani, Aura and Nijkamp, Peter, Commuter Effects on Local Labour Markets: A German Modelling Study (August 11, 2011). Tinbergen Institute Discussion Paper 11-114/3, Available at SSRN: https://ssrn.com/abstract=1908100 or http://dx.doi.org/10.2139/ssrn.1908100

Giovanni Russo (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Federico Teschi

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

Aura Reggiani

University of Bologna - Department of Economics ( email )

Piazza Scaravilli, 2
Bologna, 40126
Italy

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446091 (Phone)
+31 20 4445611 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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