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Modelling regional labour market dynamics in space and time.
- Source :
-
Papers in Regional Science . Nov2014, Vol. 93 Issue 4, p819-841. 23p. - Publication Year :
- 2014
-
Abstract
- This paper extends the seminal Blanchard and Katz regional labour market model to include interaction effects using a dynamic spatial panel data approach. Three key contributions of this extended model are: ( i) the unrealistic assumption that regions are independent of one another no longer has to be made, ( ii) the magnitude and significance of so-called spillover effects can be empirically assessed, and ( iii) both the temporal and spatial propagation of labour demand shocks can be investigated. Using annual data from 1986-2010 for 112 regions across eight EU countries, both the non-spatial and spatial models are estimated. It is found that the majority of the spillover effects are highly significant. Consistent with economic theory, the impact of a region-specific demand shock is largest in the region where the shock instigates. The shock also propagates to other regions, especially impacting the first and second-order neighbours. [ABSTRACT FROM AUTHOR]
- Subjects :
- *INDIGENOUS labor
*LABOR market
*SPACE in economics
*ECONOMICS
*ECONOMIC shock
Subjects
Details
- Language :
- English
- ISSN :
- 10568190
- Volume :
- 93
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Papers in Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 99273862
- Full Text :
- https://doi.org/10.1111/pirs.12018