TY - RPRT AU - Braun, Sebastian Till AU - Kramer, Anica AU - Kvasnicka, Michael TI - Local Labor Markets and the Persistence of Population Shocks PY - 2017/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 11077 UR - https://www.iza.org/publications/dp11077 AB - 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. KW - regional migration KW - agglomeration economies KW - locational fundamentals KW - population shock KW - postwar Germany ER -