Does the Presence of High-Skilled Employees Increase Total and High-Skilled Employment in the Long Run? Evidence from Austria

Sascha Sardadvar, Christian Reiner

    Publication: Working/Discussion PaperWU Working Paper


    Studies conducted for the US have found a positive effect of human capital endowments on employment growth, with human capital endowments diverging at the same time. In contrast, studies for European countries have found convergence of human capital endowments. This paper tests these relationships for 99 Austrian districts for the observation period 1971-2011 by estimating how the presence of high-skilled employment affects total, low-skilled and high-skilled employment growth. To this end, OLS, fixed effects and first difference regressions are estimated. The results show continuous convergence of high-skilled employment which, however, slowed downed significantly since the 1990s. In contrast to previous studies, evidence for positive effects of high-skilled on total and low-skilled employment is only weak and varies over time. Furthermore, the results show that total and high-skilled employment in suburban areas grew faster than in other regions, while districts which bordered the Eastern Bloc were disadvantaged. Nevertheless, spatial neighbourhood effects within Austria are only weak. (authors' abstract)
    Original languageEnglish
    Place of PublicationVienna
    PublisherWU Vienna University of Economics and Business
    Publication statusPublished - 2015

    Publication series

    NameWorking Papers in Regional Science

    WU Working Paper Series

    • Working Papers in Regional Science

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