Advertisement

The Determinants of Regional Disparities in Skill Segregation: Evidence from German Regions

  • Fabian Böttcher
  • Annekatrin NiebuhrEmail author
  • Friso Schlitte
  • Javier Revilla Diez
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

Labour markets in most highly developed countries are characterised by increasing inequalities in qualifications-specific employment prospects. Nickel and Bell (1995) for example find that the demand for high-skilled workers is steadily rising, while low-skilled employment is subject to a considerable decline in many countries of the OECD. On the one hand, this might be explained by a growing supply of skills due to the educational expansion in the 1960s and 1970s. On the other hand, it can be argued, that the increasing international division of labour together with technological and organisational change have been leading to a unilateral rise in the demand for high-skilled labour whereas the low-skilled compete increasingly with workers in low-wages countries (see Wood 1994, 2002). Furthermore, as a consequence of skill-biased technological and organisational changes more and more less qualified workers do not meet the increasing requirements of jobs on the domestic labour market (see Acemoglu 1998, 2002; Lindbeck and Snower 1996; Spitz-Oener 2006). Some authors also find evidence for a polarisation in skill-specific employment. Autor et al. (2003) hypothesise that highly standardised occupations of medium-skilled employees, such as book- and record-keeping, may be displaced more easily by technological innovations, e.g. by computer programmes, than comparatively simple and less standardised jobs, such as cleaning. Further empirical evidence for this hypothesis is provided by Manning (2004) or Goos and Manning (2007) for the UK and Spitz-Oener (2006) for Germany.

Keywords

Human Capital Regional Disparity Regional Labour Market Human Capital Endowment Segregation Measure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgements

Financial support from the German Research Foundation (DFG) is gratefully acknowledged as part of the project “The Regional Dimension of the Qualification-Related Structural Change”.

References

  1. Acemoglu D (1998) Why do new technologies complement skills? Directed technical change and wage inequality. Q J Econ 113(4):1055–1089CrossRefGoogle Scholar
  2. Acemoglu D (1999) Changes in unemployment and wage inequality: an alternative theory and some evidence. Am Econ Rev 89(5):1259–1278CrossRefGoogle Scholar
  3. Acemoglu D (2002) Directed technical change. Rev Econ Stud 69(4):781–809CrossRefGoogle Scholar
  4. Autor DH (2001) Wiring the labor market. J Econ Perspect 15:25–40CrossRefGoogle Scholar
  5. Autor DH, Levy F, Murnane RJ (2003) The skill content of recent technological change: an empirical exploration. Q J Econ 118(4):1279–1333CrossRefGoogle Scholar
  6. Braakmann N (2009) The role of firm-level and regional human capital for the social returns to education – evidence from German social security data. Working paper series in Economics (126)Google Scholar
  7. Card D (2001) Estimating the returns to schooling: progress on some persistent econometric problems. Econometrica 69:1127–1160CrossRefGoogle Scholar
  8. Cutler DM, Glaeser EL, Vigdor JL (1999) The rise and decline of the American Ghetto. J Polit Econ 107(3):455–506CrossRefGoogle Scholar
  9. Davis S Haltiwanger J (1991) Wage dispersion between and within U.S. manufacturing plants, 1963–86. Brooking papers on economic activity, Microeconomics, pp 115–180Google Scholar
  10. Driscoll J, Kraay AC (1998) Consistent covariance matrix estimation with spatially dependent data. Rev Econ Stat 80:549–560CrossRefGoogle Scholar
  11. Duncan OB, Duncan B (1955) A methodological analysis of segregation indexes. Am Sociol Rev 20:210–217CrossRefGoogle Scholar
  12. Duranton G (2004) The economics of production systems: segmentation and skill-biased change. Eur Econ Rev 48:307–336CrossRefGoogle Scholar
  13. Falk A, Ichino A (2006) Clean evidence on peer effects. J labor econ 24(1):39–58CrossRefGoogle Scholar
  14. Flückiger Y, Silber J (1999) The measurement of segregation in the labor force. Physica, HeidelbergCrossRefGoogle Scholar
  15. Fromhold-Eisebith M, Schrattenecker W (2006) Qualifikationsentwicklung der Beschäftigten in Deutschland. Eine raumbezogene Analyse. Raumforschung und Raumordnung 64(4):258–269CrossRefGoogle Scholar
  16. Gerlach K, Meyer W, Tsertsvadze G (2002) Entwicklung der qualifikatorischen Segregation im Verarbeitenden Gewerbe. Betrieblicher Wandel und Fachkräftebedarf -, Beiträge zur Arbeitsmarkt- und Berufsforschung 257:51–80Google Scholar
  17. Goos M, Manning A (2007) Lousy and lovely jobs: the rising polarisation of work in Britain. Rev Econ Stat 89(1):118–133CrossRefGoogle Scholar
  18. Griliches Z (1969) Capital-skill complementarity. Rev Econ Stat 51(4):465–468CrossRefGoogle Scholar
  19. Hellerstein J, Neumark D (2003) Workplace segregation in the united states: race, ethnicity and skill. Rev Econ Stat 90(3):459–477CrossRefGoogle Scholar
  20. Hoechle D (2007) Robust standard errors for panel regressions with cross-sectional dependence. Stata J 7(3):281–312Google Scholar
  21. Iranzo S, Schivardi F, Tosetti E (2008) Skill dispersion and firm productivity: an analysis with employer-employee matched data. J Labor Econ 26(2):247–285CrossRefGoogle Scholar
  22. Jovanovic B, Rob R (1989) The growth and diffusion of knowledge. Rev Econ Stud 56(4):569–582CrossRefGoogle Scholar
  23. Karmarz F, Lollivier S, Pelé L-P (1996) Wage inequalities and firm-specific compensation policies in France. Annales d’Economie et de Statistique 41/42:369–386Google Scholar
  24. Kremer M, Maskin E (1996) Wage inequality and segregation by skill, NBER Working Paper 5718Google Scholar
  25. Lindbeck A, Snower DJ (1996) Reorganization of firms and labor-market inequality. Am Econ Rev 86(2):315–321Google Scholar
  26. Lucas RE (1988) On the mechanics of economic development. J Monet Econ 22(1):3–42CrossRefGoogle Scholar
  27. Manning A (2004) We can work it out: the impact of technological change on the demand for low-skilled workers. Scot J Polit Econ 51(5):581–608CrossRefGoogle Scholar
  28. Martins PS, Jin JY (2010) Firm-level social returns to education. J Popul Econ 23(2):539–558CrossRefGoogle Scholar
  29. Mas A, Moretti E (2009) Peers at work. Am Econ Rev 99(1):112–145CrossRefGoogle Scholar
  30. McCann P, Simonen J (2005) Innovation, knowledge spillovers and local labour markets. Pap Reg Sci 84(3):465–485CrossRefGoogle Scholar
  31. Nickel SJ, Bell BD (1995) The collapse in demand for the unskilled and unemployment across the OECD. Oxford Rev Econ Pol 11(1):40–62CrossRefGoogle Scholar
  32. Schlitte F (2012) Local human capital, segregation by skill, and skill-specific employment growth. Pap Reg Sci 91(1):85–107CrossRefGoogle Scholar
  33. Spitz-Oener A (2006) Technical change, job tasks, and rising educational demands: looking outside the wage structure. J Labor Econ 24(2):235–270CrossRefGoogle Scholar
  34. Stephan G (2001) Firmenlohndifferenziale. Eine Analyse für die Bundesrepublik Deutschland. Campus, Frankfurt/New YorkGoogle Scholar
  35. Tsertsvadze G (2005) Qualifikatorische Segregation: Entwicklung und Bestimmungsgründe; eine theoretische und empirische Analyse. Shaker, AachenGoogle Scholar
  36. Wood A (1994) North–south trade, employment and inequality. Changing fortunes in a skill-driven world, IDS development studies series. Clarendon Press, OxfordGoogle Scholar
  37. Wood A (2002) Globalization and wage inequalities: a synthesis of three theories. Weltwirtschaftliches Archiv 138(1):54–82CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Fabian Böttcher
    • 1
  • Annekatrin Niebuhr
    • 2
    Email author
  • Friso Schlitte
    • 3
  • Javier Revilla Diez
    • 4
  1. 1.CIMA Institut für Regionalwirtschaft GmbHHannoverGermany
  2. 2.IAB Nord, Regional Research Network of the Institute for Employment ResearchKielGermany
  3. 3.Hamburgisches WeltWirtschaftsInstitut HWWIHamburgGermany
  4. 4.Institute of Economic and Cultural GeographyLeibniz University of HannoverHannoverGermany

Personalised recommendations