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Employment-output link in Finland : evidence from regional data

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Author Info
Aki Kangasharju (Pellervo Economic Research Institute, Finland)
Jaakko Pehkonen (School of Business and Economics, University of Jyväskylä, Finland)

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Abstract

This study examines the relation between employment and output using panel data on 452 Finnish municipalities regrouped into 85 areas, representing regions at the so called NUTS4 level in the EU. The results imply that: (i) the contemporaneous relation between changes in employment and output growth disappeared in the early 1990s; (ii) there is evidence of a recovery of this relation in the mid 1990s; (iii) there are differences in the employment-output relation between different regions; and (iv) the existing differences can be partly explained by differences in industrial specialisation.

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File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/f2001_1d.pdf
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Publisher Info
Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 14 (2001)
Issue (Month): 1 (Spring)
Pages: 41-50
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Handle: RePEc:fep:journl:v:14:y:2001:i:1:p:41-50

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Web page: http://www.taloustieteellinenyhdistys.fi
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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Fredriksson, P., 1995. "The Dynamics of Regional Labour Markets and Active Labour Market Policy: Swedish Evidence," Papers 1995-20, Uppsala - Working Paper Series.
    Other versions:
  3. Ilmakunnas, Pekka, 1989. "Survey Expectations vs. Rational Expectations in the Estimation of a Dynamic Model: Demand for Labour in Finnish Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(3), pages 297-314, August.
  4. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  5. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Jaakko Pehkonen, Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor and Francis Journals, vol. 32(5), pages 445-458, July. [Downloadable!] (restricted)
  7. Pehkonen, Jaakko, 1992. "Survey Expectations and Stochastic Trends in Modelling the Employment-Output Equation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 579-89, November.
  8. Arellano, Manuel, 1989. "A note on the Anderson-Hsiao estimator for panel data," Economics Letters, Elsevier, vol. 31(4), pages 337-341, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. PERUGINI, Cristiano, 2009. "Employment Intensity Of Growth In Italy. A Note Using Regional Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(1). [Downloadable!] (restricted)
    Other versions:
  2. Sanna-Mari Ahtonen, 2003. "Spatial autocorrelation in employment-output relation," ERSA conference papers ersa03p209, European Regional Science Association. [Downloadable!]
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