This article provides a comprehensive analysis of how regional changes in the age and education distribution of the labour force affect local and neighbourhood unemployment rates. Based on theoretical considerations, we argue that differences in job search, separation, and commuting are key factors in group differences, and therefore, changes in relative group size affect the level of unemployment. The empirical analysis focuses on local labour markets in Germany, using a dynamic spatial panel data model. According to the estimates, an increasing proportion of young and/or low-educated workers raises local unemployment, while larger proportions of older prime-age and/or highly educated workers raise unemployment in neighbouring labour markets. As a result, the recent ageing and education developments in the German labour force have led to a 25% reduction in the unemployment rate.
{"title":"Local Effects of Education and Age Groups on Unemployment in Germany","authors":"Fabian Busch, Carsten Ochsen","doi":"10.1111/grow.70011","DOIUrl":"https://doi.org/10.1111/grow.70011","url":null,"abstract":"<p>This article provides a comprehensive analysis of how regional changes in the age and education distribution of the labour force affect local and neighbourhood unemployment rates. Based on theoretical considerations, we argue that differences in job search, separation, and commuting are key factors in group differences, and therefore, changes in relative group size affect the level of unemployment. The empirical analysis focuses on local labour markets in Germany, using a dynamic spatial panel data model. According to the estimates, an increasing proportion of young and/or low-educated workers raises local unemployment, while larger proportions of older prime-age and/or highly educated workers raise unemployment in neighbouring labour markets. As a result, the recent ageing and education developments in the German labour force have led to a 25% reduction in the unemployment rate.</p>","PeriodicalId":47545,"journal":{"name":"Growth and Change","volume":"56 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/grow.70011","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143113062","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Cognitive proximity between firms, and their position in relation to other firms in a knowledge space, can influence firms' innovation performance. While some studies have begun analysing this in developing countries, there is a dearth of evidence in Africa, and more generally for small and especially micro enterprises as well as for informal enterprises. To fill this gap, we utilise rich new survey data covering 711 micro and small manufacturing firms in Johannesburg, South Africa. We develop and apply a novel multidimensional measure of cognitive proximity, using information on the skills most needed in firms' activities, firms' proximity in an industrial space, and the types of external co-operation in which they engage. We find that cognitive proximity is positively associated with innovation outcomes. Although this relationship is increasing for most of the sample, there is evidence of an inverted-U relationship for firms located at higher percentiles, suggesting that too much proximity may lead to a cognitive lock-in. Firms' knowledge space position is also associated with differential innovation outcomes. In extensions of the model, we find interesting differences in how both cognitive proximity and knowledge space positions are associated with the degree of innovation novelty and also vary according to whether the firm is formal or informal.
{"title":"How Do Cognitive Proximity and Knowledge Space Position Affect Firms' Innovation? Evidence From Micro and Small Manufacturing Firms in South Africa","authors":"Jefferson R. B. Galetti, Fiona Tregenna","doi":"10.1111/grow.70021","DOIUrl":"https://doi.org/10.1111/grow.70021","url":null,"abstract":"<p>Cognitive proximity between firms, and their position in relation to other firms in a knowledge space, can influence firms' innovation performance. While some studies have begun analysing this in developing countries, there is a dearth of evidence in Africa, and more generally for small and especially micro enterprises as well as for informal enterprises. To fill this gap, we utilise rich new survey data covering 711 micro and small manufacturing firms in Johannesburg, South Africa. We develop and apply a novel multidimensional measure of cognitive proximity, using information on the skills most needed in firms' activities, firms' proximity in an industrial space, and the types of external co-operation in which they engage. We find that cognitive proximity is positively associated with innovation outcomes. Although this relationship is increasing for most of the sample, there is evidence of an inverted-U relationship for firms located at higher percentiles, suggesting that too much proximity may lead to a cognitive lock-in. Firms' knowledge space position is also associated with differential innovation outcomes. In extensions of the model, we find interesting differences in how both cognitive proximity and knowledge space positions are associated with the degree of innovation novelty and also vary according to whether the firm is formal or informal.</p>","PeriodicalId":47545,"journal":{"name":"Growth and Change","volume":"56 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/grow.70021","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143111594","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}