Commuter Effects on Local Labour Markets: A German Modelling Study
Tinbergen Institute Discussion Paper 11-114/3
28 Pages Posted: 11 Aug 2011
Date Written: August 11, 2011
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: Suggested Citation