Heide, Thomas van der (2022) Labour market impacts of XL real estate. Master thesis.
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Abstract
This research paper analyses the labour market effects as a result of an isolated and very large distribution centre locating to an area. These buildings are often opposed, based on arguments of aesthetics, blocking sightlines and that these buildings, due to their size, are often built in previously undeveloped areas. The counter argument to this point is that they provide employment for the local economy. This paper attempts to support this argument by analysing the local economy of several of the sites where an extra-large distribution centre was constructed. Focussing on the most high-impact of these buildings, those built away from similar constructions, the analysis compares their past employment levels with their more recent employment levels. This difference isthen compared with the average employment level growth in the Netherlands, and compared to reference areas with similar characteristics. The difference-in-differences analysis shows that the construction of an XL distribution centre in an area cannot be seen as a guarantee for employment growth in the local economy. Furthermore, regression analyses reveal that the location of such a building does not reveal higher levels of employment growth in the area. However, many of the XL distribution centres identified in this paper were no longer isolated by the year 2018, and had formed clusters of similar businesses, attracting new firms to the region.
| Item Type: | Thesis (Master) |
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| Degree programme: | Economic Geography |
| Supervisor: | Koster, S. |
| Date Deposited: | 23 Jan 2023 08:37 |
| Last Modified: | 23 Jan 2023 08:37 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4105 |
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