Local labor markets and the persistence of population shocks

Sebastian Till Braun, Anica Kramer, Michael Kvasnicka

    Research output: Working paperDiscussion paper

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    Abstract

    This paper studies the persistence of a large, unexpected, and regionally very unevenly distributed population shock, the inflow of eight million ethnic Germans from Eastern Europe to West Germany after World War II. Using detailed census data from 1939 to 1970, we show that the shock had a persistent effect on the distribution of population within local labor markets, but only a temporary effect on the distribution between labor markets. These results suggest that locational fundamentals determine population patterns across but not within local labor markets, and they can help to explain why previous studies on the persistence of population shocks reached such different conclusions.
    Original languageEnglish
    Place of PublicationSt Andrews
    PublisherUniversity of St Andrews
    Number of pages27
    Publication statusPublished - 30 Sept 2017

    Publication series

    NameSchool of Economics and Finance Discussion Paper
    PublisherUniversity of St Andrews
    No.1715
    ISSN (Print)0962-4031
    ISSN (Electronic)2055-303X

    Keywords

    • Population shock
    • Locational fundamentals
    • Agglomeration economies
    • Regional migration
    • Post-war Germany

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