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Labour Demand And Labour Market Institutions In Rural Areas

Author

Listed:
  • Petri Kahila

    (Karelian Institute at the University of Eastern Finland)

  • Daniel Rauhut

    (Norwegian Institute for Urban and Regional Research in Oslo, Norway)

Abstract

A well-functioning rural labour market is crucial as it contributes to a more effective division of labour in the economy. Rural policy in all its forms must address rural regions according to their characteristics and state of development. Even if regionally differentiated policies can be created to promote and facilitate a more efficient labour market policy the crucial issue is not the level at which policies should be implemented. Rather than solving existing policy rigidities, the discovery and promotion of new and more flexible solutions to the problems faced in rural labour markets is what is really required. There is clear need to abandon a uniform policy structure for all rural regions, namely, policy based on national averages, as this is neither desirable nor effective. This paper aims at discussing the impact of structural change in the rural economy and its positive effects on labour demand and on the renewal of rural labour market institutions. In line with conventional economic theory, unemployment is seen as an indicator of the demand for labour. We will thus focus on the labour market institutions, formal and informal which are crucial to counteracting unemployment and stimulating job creation.

Suggested Citation

  • Petri Kahila & Daniel Rauhut, 2015. "Labour Demand And Labour Market Institutions In Rural Areas," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 9(2), pages 20-38, December.
    • Handle: RePEc:rrs:journl:v:9:y:2015:i:2:p:20-38
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    References listed on IDEAS

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    2. Bea Cantillon, 2010. "Disambiguating Lisbon. Growth, Employment and Social Inclusion in the Investment State," Working Papers 1007, Herman Deleeck Centre for Social Policy, University of Antwerp.
    3. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Commonalities and Differences in Labour Market Developments and Constraints in Different EU Regions," Factor Markets Working Papers 125, Centre for European Policy Studies.
    4. Philip Lowe & Neil Ward, 2009. "England's Rural Futures: A Socio-Geographical Approach to Scenarios Analysis," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1319-1332, December.
    5. Ian Hodge & Jessica Dunn & Sarah Monk & Maureen Fitzgerald, 2002. "Barriers to Participation in Residual Rural Labour Markets," Work, Employment & Society, British Sociological Association, vol. 16(3), pages 457-476, September.
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    Cited by:

    1. Elżbieta Zuzańska-Żyśko & Marlena Dyszy, 2021. "Dynamic Villages in the Hinterland of a Polycentric Region: Case Study of the Górnośląsko-Zagłębiowska Metropolis in Poland," Land, MDPI, vol. 10(8), pages 1-22, July.

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    More about this item

    Keywords

    Unemployment; rural; labour demand; institutions;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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