The Impact of the German Autobahn Net on Regional Labor Market Performance: A Study Using Historical Instrument Variables

32 Pages Posted: 8 Nov 2014

See all articles by Joachim Moeller

Joachim Moeller

Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Regensburg; IZA Institute of Labor Economics

Marcus Zierer

University of Regensburg

Abstract

This paper analyzes the impact of the German autobahn net on the economic performance of German regions. To address endogeneity and reverse causation problems, we use historical instrument variables, i.e. a plan of the railroad net in 1890 and a plan of the autobahn net in 1937. We find a statistically and economically significant causal effect of transport infrastructure investments as measured by changes in the length of the autobahn net of West German NUTS 3 areas on regional employment and the wage bill.

Keywords: transport infrastructure, regional labor market performance, historical instrumental variables, reverse causation, new economic geography

JEL Classification: L91, N73, N74, R11, R40, R49

Suggested Citation

Moeller, Joachim and Zierer, Marcus, The Impact of the German Autobahn Net on Regional Labor Market Performance: A Study Using Historical Instrument Variables. IZA Discussion Paper No. 8593. Available at SSRN: https://ssrn.com/abstract=2520748

Joachim Moeller (Contact Author)

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Regensburg

93040 Regensburg
D-93040 Regensburg, 93053
Germany

IZA Institute of Labor Economics

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

Marcus Zierer

University of Regensburg

93040 Regensburg
D-93040 Regensburg, 93053
Germany

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