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Spatial dependencies in German matching functions

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  • Lottmann, Franziska
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    Abstract

    This paper proposes a spatial panel model for German matching functions to avoid possibly biased and inefficient estimates due to spatial dependence. We provide empirical evidence for the presence of spatial dependencies in matching data. Based on an official data set containing monthly information for 176 local employment offices, we show that neglecting spatial dependencies in the data results in upward-biased coefficients. For the incorporation of spatial information into our model, we use data on commuting relations between local employment offices. Furthermore, our results suggest that a dynamic modeling is more appropriate for matching functions.

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    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 42 (2012)
    Issue (Month): 1-2 ()
    Pages: 27-41

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    Handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:27-41

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    Web page: http://www.elsevier.com/locate/regec

    Related research

    Keywords: Empirical matching; Geographic labor mobility; Spatial dependence; Regional unemployment;

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    References

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    Cited by:
    1. Parent, Olivier & LeSage, James P., 2012. "Spatial dynamic panel data models with random effects," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 727-738.
    2. Bauer, Anja, 2013. "Mismatch unemployment : evidence from Germany 2000-2010," IAB Discussion Paper 201310, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Stops, Michael, 2012. "Job matching across occupational labour markets," IAB Discussion Paper 201227, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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