Regional development theories and policies have now moved into new arenas. Today, the competitive advantages of regions put a premium on social capital, hence, the significant role played by localized learning and the construction of knowledge networks and institutional capacity. These are necessary and complementary assets to factors traditionally thought to influence regional development. The...

We document large and persistent spatial dispersion in unemployment rates, vacancies, labor market tightness, flows, wages for Germany on a granular regional level. find that both differences inflows into outflows from are important accounting the rates. Within search- matching model with risk-averse agents, moral hazard, endogenous separations free mobility we show an optimal policy response t...