Journal article
Public good provision and local employment - evidence from grammar school closures in East Germany
- Abstract:
- This paper assesses the impact of public good provision on the spatial distribution of employment as predicted by a local labor market model that allows for commuting. Using local grammar school closures in East Germany after 2000 in a difference-in-differences estimation framework coupled with an entropy balancing strategy, we find that the school closures triggered a decline in the number of (employed) residents by 11%. The number of local employees, in contrast, decreases by just 5% as in-commuters do not respond to the school closures. Moreover, we find – as predicted – that the school closures reduce house prices and that the share of land used for housing declines, albeit only to a small extent.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
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(Preview, Accepted manuscript, pdf, 4.8MB, Terms of use)
-
- Publisher copy:
- 10.1016/j.regsciurbeco.2021.103672
Authors
- Publisher:
- Elsevier
- Journal:
- Regional Science and Urban Economics More from this journal
- Volume:
- 88
- Article number:
- 103672
- Publication date:
- 2021-03-12
- Acceptance date:
- 2021-03-03
- DOI:
- ISSN:
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0166-0462
- Language:
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English
- Keywords:
- Pubs id:
-
1165922
- Local pid:
-
pubs:1165922
- Deposit date:
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2021-03-04
- ARK identifier:
Terms of use
- Copyright holder:
- Elsevier B.V.
- Copyright date:
- 2021
- Rights statement:
- © 2021 Elsevier B.V. All rights reserved.
- Notes:
- This is the accepted manuscript version of the article. The final version is available online from Elsevier at: https://doi.org/10.1016/j.regsciurbeco.2021.103672
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