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A regional labour market model for analyzing the impact of a recession

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  • Laura Barbieri

    ()
    (DISCE, Università Cattolica)

  • Maurizio Baussola

    ()
    (DISCE, Università Cattolica)

  • Chiara Mussida

    ()
    (DISCE, Università Cattolica)

Abstract

The effects of the recent economic recession have been widely discussed, particularly at the macro economic level. However, the economic downturn has been pervasive and has also determined a range of economic effects at different territorial levels. It has therefore become necessary to set up appropriate analytical tools aimed at investigating the impact of the economic downturn at the regional level, and to implement adequate policy options to mitigate such negative impacts. We propose a new macro-micro econometric framework which incorporates simultaneously both aggregate labour demand and supply, and the labour market flows determining the steady-state unemployment rate. We can thus simulate demand or supply shocks and therefore assess their impacts on labour demand and supply, and also on unemployment and labour market flows. This enables us to pinpoint the dynamic effects of such shocks and to compare the different behaviours of the regional framework and of the economy as a whole.

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File URL: http://www.unicatt.it/dipartimenti/DISES/allegati/dises1288.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali with number dises1288.

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Length: 22 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:ctc:serie2:dises1288

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Web page: http://www.unicatt.it/Dipartimenti/DISES
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Keywords: regional econometric models; labour demand and supply; labour market flows; steady-state unemployment rate.;

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  1. Andrea Brandolini & Piero Cipollone & Eliana Viviano, 2004. "Does the ILO Definition Capture All Unemployment?," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 529, Bank of Italy, Economic Research and International Relations Area.
  2. Gaspard Aeschimann & Gabrielle Antille & Fabrizio Carlevaro & Jean-Paul Chaze & Giovanni Ferro-Luzzi & Yves Flückiger & Manfred Gilli, 1999. "Modelling and forecasting the social contributions to the Swiss Old Age and Survivor Insurance scheme," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), Swiss Society of Economics and Statistics (SSES), vol. 135(III), pages 349-368, September.
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