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Essays on job displacement and the economics of local labour markets

Helm, I; (2016) Essays on job displacement and the economics of local labour markets. Doctoral thesis , UCL (University College London).

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In this thesis, I address questions at the intersection of labour and urban economics by analysing the economics of local labour markets. In Chapters 2 and 3, I analyse the existence of spillover effects in local labour markets, while in Chapter 4, I provide a first step towards estimating local fiscal multipliers. More particularly, in Chapter 2, I quantify spillover effects of mass layoffs. My empirical strategy combines matching with an event study approach to trace employment and wages in regions hit by a mass layoff relative to suitable control regions. I find sizeable and persistent negative spillover effects on the regional economy. In contrast, negative employment effects on workers employed in the region at the time of the mass layoff are considerably smaller. In Chapter 3, I provide a novel approach to estimate agglomeration effects using national industry shocks. For identification I exploit trade shocks to industries in Germany stemming from trade integration of Eastern Europe and China. These shocks differentially disseminate across regions and industries because of differences in local industry structure. Workers in the same industry but in different regions may hence be differentially affected by indirect exposure to the other local industries’ trade shocks. I find considerable employment spillovers from other tradeable industries’ net trade shocks, even stronger effects within the same broad sector and that predominantly shocks to high technology industries generate spillovers. In Chapter 4, I document the effect of the 1987 Census on municipal fiscal transfers, revenues and expenditures in Germany. In particular, I exploit that the allocation of fiscal revenues depends on local population counts. Combining population and fiscal data from the three largest federal states in Germany, I confirm that municipalities with more inhabitants observed in the Census than recorded in register-based projections receive additional transfers within Germany’s fiscal equalization scheme, leading to a spatial reallocation of revenues across municipalities.

Type: Thesis (Doctoral)
Title: Essays on job displacement and the economics of local labour markets
Event: University College London
Language: English
UCL classification: UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/1519648
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