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Arbeitsmarktpolitik: Regionale Besonderheiten berücksichtigen

Press Release of May 7, 2002

Results of international workshop held by DIW Berlin 11th-13th April 2002
The interplay between the labour market and regional economies was brought into focus at the DIW Berlin's international workshop. One of the most important results discovered was that there is no labour market as such; individual labour markets develop in their own way. The level of wages and job opportunities both greatly depend on the concentration in these regional labour markets. According to empirical studies, highly qualified employees in particular benefit from the strength of the economic activity in their region. Theoretical studies show that investments in human capital particularly pay off in more highly concentrated markets. Labour market policy would however be mistaken to hastily adopt economic advice that solely concentrates on regional, non-differentiated measures without fully considering the consequences. (See Weekly Report 19/2002).