(Un)Related Variety and Employment Growth at the Sub-Regional Level

WIFO Working Papers No. 511

38 Pages Posted: 27 Feb 2016

See all articles by Matthias Firgo

Matthias Firgo

Austrian Institute of Economic Research (WIFO)

Peter Mayerhofer

Austrian Institute of Economic Research

Date Written: February 23, 2016

Abstract

Empirical results on the link between growth and diversity in (un)related industries proved to be highly dependent on the specific regional and temporal context. Making use of highly disaggregated employment data at the sub-regional level, we find that higher employment growth in Austria is mainly linked to unrelated variety. However, in-depth analyses by sectors and regional regimes illustrate substantial heterogeneity in the results, mainly driven by the service sector and by a large number of relatively small regions. Thus, our results argue against structural policy conclusions based on assessments across all economic sectors or different types of regions.

Keywords: related variety, specialization, knowledge spillovers, employment growth, structural policy

JEL Classification: D62, J24, O33, R11, R58

Suggested Citation

Firgo, Matthias and Mayerhofer, Peter, (Un)Related Variety and Employment Growth at the Sub-Regional Level (February 23, 2016). WIFO Working Papers No. 511, Available at SSRN: https://ssrn.com/abstract=2729126 or http://dx.doi.org/10.2139/ssrn.2729126

Matthias Firgo (Contact Author)

Austrian Institute of Economic Research (WIFO) ( email )

Arsenal Objekt 20
Wien, 1030
Austria
+43-1-7982601-471 (Phone)

Peter Mayerhofer

Austrian Institute of Economic Research ( email )

P.O. Box 91
Wien, A-1103
Austria

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