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Aggregate Matching Efficiency : A Stochastic Production Frontier Approach, France 1990-1994

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Author Info

  • Aomar IBOURK

    (CREQ, Université de Marrakech - Maroc)

  • Béatrice MAILLARD

    (FLSE, Université catholique de Lille - France)

  • Serge PERELMAN

    (CREPP, Université de Liège)

  • Henri R. SNEESSENS

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and IZA, and FLSE, Université catholique de Lille - France)

Abstract

We evaluate the determinants of aggregate matching efficiency changes through a stochastic Cobb-Douglas production frontier model. The efficiency coefficient is represented by a stochastic function of variables meant to capture workers and firms characteristics. The model is estimated on French data covering twenty-two regions from March 1990 till February 1995. Our estimates suggest that aggregate matching efficiency has decreased steadily in the early nineties. There are also wide cross-regional differences. On average, about 30% of the variations of efficiency observed across time and regions can be related to changes in the explanatory variables used in the model. The most important explanatory variables are the proportion of youngsters, females and immigrants in the stock of job seekers. Long-term unemployment has a significant negative effect, population density a significant positive one. The huge decline in the proportion of permanent job offers has apparently little effect on matching efficiency

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2001034.

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Length: 25
Date of creation: 01 Nov 2001
Date of revision:
Handle: RePEc:ctl:louvir:2001034

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Keywords: matching efficiency; regional unemployment; stochastic frontier;

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  1. W. Frame & Tim Coelli, 2001. "U.S. Financial Services Consolidation: The Case of Corporate Credit Unions," Review of Industrial Organization, Springer, vol. 18(2), pages 229-241, March.
  2. Patricia M. Anderson & Simon M. Burgess, 2000. "Empirical Matching Functions: Estimation and Interpretation Using State-Level Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 93-102, February.
  3. A Ibourk & Sergio Perelman, 1999. "Frontières d’efficacité et processus d’appariement sur le marché du travail au Maroc," CREPP Working Papers 9904, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
  4. Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
  5. Lockwood, Ben, 1991. "Information Externalities in the Labour Market and the Duration of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 733-53, July.
  6. Coles, Melvyn G & Smith, Eric, 1996. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," Economica, London School of Economics and Political Science, vol. 63(252), pages 589-97, November.
  7. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
  8. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  9. Blanchard, J.O., 1989. "The Aggregate Matching Function," Working papers 538, Massachusetts Institute of Technology (MIT), Department of Economics.
  10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
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Cited by:
  1. Sanna-Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2006. "Regional Matching Frictions and Aggregate Unemployment," ERSA conference papers ersa06p416, European Regional Science Association.
  2. Fitzenberger, Bernd & Furdas, Marina, 2012. "Benchmarking Regions: Estimating the Counterfactual Distribution of Labor Market Outcomes," IZA Discussion Papers 6465, Institute for the Study of Labor (IZA).

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