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Persistence and Turnover in Regional Unemployment Disparities

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Author Info
Jaakko Pehkonen, Hannu Tervo

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Abstract

PEHKONEN J. and TERVO H. (1998) Reg. Studies, 32 , 445-458, Persistence and turnover in regional unemployment disparities. This study investigates persistence and turnover in regional unemployment disparities in Finland by examining time-series data on 10 labour districts and 423 municipalities. The data on the labour districts indicates that regional unemployment disparities are rather persistent and that steady-state unemployment rates differ considerably across the districts. The results on the municipality level data, however, suggest the presence of substantial intra-distribution dynamics and that the degree of persistence is less profound than the labour district data indicates. In all, the results are more in line with the disequilibrium than the equilibrium view of the causes of regional unemployment differences. PEHKONEN J. et TERVO H. (1998)La persistance et l'évolution des écarts du chômage régional, Reg. Studies 32 , 445- 458. Cette étude examine la persistance et l'évolution des écarts du chômage régional en Finlande à partir des données exprimées en série temporelle et provenant de dix bassins d'emploi et de 423 municipalités. Les données relatives aux bassins d'emploi laissent voir que les écarts du chômage régional ont tendance à persister et que la stabilité des taux de chômage varient sensiblement à travers les bassins. Cependant, au niveau de la municipalité les résultats laissent voir la présence d'une dynamique non-négligeable au sein de la distribution et une persistance moins marquée que les bassins d'emploi ne laissent supposer. A tout prendre, les résultats s'accordent mieux à l'explication des écarts du chômage régional qui remonte à la notion de d'équilibre plutôt qu' à la notion d'équilibre. PEHKONEN J. und TERVO H. (1998) Fortbestand und Wandel regionaler Ungleichheiten der Erwerbslosigkeit, Reg. Studies 32 , 445–458. Dieser Aufsatz untersucht Fortbestand und Wandel regionaler Ungleichheiten der Erwerbslosigkeit in Finnland durch Überprüfung von Zeitseriendaten in zehn Arbeitsgebieten und 423 Gemeinden. Die Daten für die Arbeitsgebiete zeigen, daß regionale Ungleichheiten der Erwerbslosigkeit ziemlich hartnäckig sind, und gleichbleibende Erwerbslosigkeitsraten erheblich von einem Distrikt zum andern abweichen. Die Ergebnisse für Daten auf Gemeindeebene legen jedoch das Vorhandensein einer beträchtlichen Dynamik innerhalb der Verteilung nahe, und daß das Ausmaß des hartnäckigen Fortbestands weniger schwerwiegend ist als die Arbeitsgebietsdaten andeuten. Insgesamt stimmen die Ergebnisse eher mit der Auffassung eines gestörten Gleichgewichts als der des Gleichgewichts bezüglich der Ursache regionaler Erwerbslosigkeitsunterschiede überein.

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 32 (1998)
Issue (Month): 5 (July)
Pages: 445-458
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Handle: RePEc:taf:regstd:v:32:y:1998:i:5:p:445-458

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Keywords: Unemployment Disparities Regions Convergence

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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. Blanchard, Olivier J. & Summers, Lawrence H., 1987. "Hysteresis in unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 288-295. [Downloadable!] (restricted)
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  2. Franz, Wolfgang, 1990. "Hysteresis in Economic Relationships: An Overview," Empirical Economics, Springer, vol. 15(2), pages 109-25.
  3. Hyclak, Thomas & Johnes, Geraint, 1987. "On the Determinants of Full Employment Unemployment Rates in Local," Applied Economics, Taylor and Francis Journals, vol. 19(2), pages 191-200, February.
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  5. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," Working papers 427, Massachusetts Institute of Technology (MIT), Department of Economics.
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  6. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, vol. 8(4), pages 57-69, Winter.
  8. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
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  9. Perron, Pierre, 1990. "Testing for a Unit Root in a Time Series with a Changing Mean," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(2), pages 153-62, April.
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  10. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April. [Downloadable!] (restricted)
  11. Marston, Stephen T, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 57-79, February. [Downloadable!] (restricted)
  12. Evans, Philip & McCormick, Barry, 1994. "The New Pattern of Regional Unemployment: Causes and Policy Significance," Economic Journal, Royal Economic Society, vol. 104(424), pages 633-47, May. [Downloadable!] (restricted)
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  14. Bhargava, Alok, 1986. "On the Theory of Testing for Unit Roots in Observed Time Series," Review of Economic Studies, Blackwell Publishing, vol. 53(3), pages 369-84, July. [Downloadable!] (restricted)
  15. Byers, J D, 1991. "Testing for Common Trends in Regional Unemployment," Applied Economics, Taylor and Francis Journals, vol. 23(6), pages 1087-92, June.
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  17. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April. [Downloadable!] (restricted)
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  18. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
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Full references

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. Aki Kangasharju & Sari Pekkala, 2001. "Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?," ERSA conference papers ersa01p196, European Regional Science Association. [Downloadable!]
    Other versions:
  2. repec:pdm:journl:art_05/2006 is not listed on IDEAS
  3. Petri Böckerman, 2002. "Understanding Regional Productivity in a Nordic Welfare State: Does ICT Matter?," Discussion Papers 798, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association. [Downloadable!]
    Other versions:
  5. Kari Hämäläinen & Petri Böckerman, 2002. "Regional Labour Market Dynamics, Housing and Migration," VATT Discussion Papers 284, Government Institute for Economic Research (VATT). [Downloadable!]
    Other versions:
  6. Manfred M. Fischer & Erich Maierhofer, 2001. "The tyranny of regional unemployment rates," ERSA conference papers ersa01p270, European Regional Science Association. [Downloadable!]
  7. Hannu Tervo, 2000. "Migration and Labour Market Adjustment: empirical evidence from Finland 1985–90," International Review of Applied Economics, Taylor and Francis Journals, vol. 14(3), pages 343-360, July. [Downloadable!] (restricted)
  8. Aki Kangasharju & Jaakko Pehkonen, 2001. "Employment-output link in Finland : evidence from regional data," Finnish Economic Papers, Finnish Society for Economic Research, vol. 14(1), pages 41-50, Spring. [Downloadable!]
  9. Nicolaas Groenewold & Alfred Hagger, 2007. "Regional Unemployment Disparities: An Evaluation of Policy Measures," Economics Discussion / Working Papers 07-05, The University of Western Australia, Department of Economics. [Downloadable!]
  10. Kangasharju, Aki & Pehkonen, Jaakko, 1999. "Employment-output link in Finland: evidence from regional-level data," ERSA conference papers ersa99pa304, European Regional Science Association. [Downloadable!]
  11. Böckerman, Petri & Hämäläinen, Kari, 2002. "Housing, dynamics of regional labour markets and migration," ERSA conference papers ersa02p159, European Regional Science Association. [Downloadable!]
  12. Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association. [Downloadable!]
  13. Robert Dixon, David Shepherd, James Thomson, 2001. "Regional Unemployment Disparities in Australia," Regional Studies, Taylor and Francis Journals, vol. 35(2), pages 93-102, April. [Downloadable!] (restricted)
  14. Petri Böckerman, 2004. "Does labour market reorganization reduce unemployment?," Applied Economics Letters, Taylor and Francis Journals, vol. 11(12), pages 745-748, October. [Downloadable!] (restricted)
  15. J.Paul Elhorst, 2005. "Models for Dynamic Panels in Space and Time - an Application to Regional Unemployment in the EU," ERSA conference papers ersa05p81, European Regional Science Association. [Downloadable!]
  16. repec:pdm:journl:art_02/2006 is not listed on IDEAS
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