Advanced Search
MyIDEAS: Login to save this paper or follow this series

Matching inefficiencies, regional disparities and unemployment

Contents:

Author Info

  • Jaakko Pehkonen
  • Aki Kangasharju
  • Sanna-Mari Hynninen

Abstract

In this paper we apply a stochastic frontier approach to examine how matching efficiency and regional differences in structural factors contribute to regional and aggregate unemployment. Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local labour offices operated with full efficiency or (ii) they shared the same structure of job seekers and vacant jobs as the most favourable office. In the former case an increase in hirings would lower the average unemployment rate by 2.4 percentage points. In the latter case the decrease would be 1.4 percentage points. Further, we find that fixed effects are positively c0orrelated with both a more favourable structure and higher efficiency. This suggests that the fixed effects may capture some part of time invariant features in the structure and efficiency. Thus, the role of structural factors and efficiency in regional unemployment disparities may be higher than estimated.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.vatt.fi/file/vatt_publication_pdf/wp4.pdf
Download Restriction: no

File URL: http://www.vatt.fi/publications/latestPublications/publication/Publication_1345_id/825
Download Restriction: no

Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 4.

as in new window
Length:
Date of creation: 28 May 2009
Date of revision:
Handle: RePEc:fer:wpaper:4

Contact details of provider:
Postal: Arkadiankatu 7, P.O. Box 1279, FI-00101 Helsinki
Phone: +358 295 519 400
Fax: +358 295 519 599
Email:
Web page: http://www.vatt.fi/
More information through EDIRC

Order Information:
Email:

Related research

Keywords: Technical efficiency; structural factors; matching; regions; aggregate unemployment;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ossi Korkeamäki, 2011. "The Finnish payroll tax cut experiment revisited," Working Papers, Government Institute for Economic Research Finland (VATT) 22, Government Institute for Economic Research Finland (VATT).
  2. Torben Dall Schmidt & Aki Kangasharju & Daniel Rauhut, 2011. "Population Changes and Regional Economic Growth in the Nordic Countries 1994-2006," ERSA conference papers ersa10p922, European Regional Science Association.
  3. Ossi Korkeamäki & Tomi Kyyrä, 2010. "Institutional rules, labour demand and retirement through disability programme participation," Working Papers, Government Institute for Economic Research Finland (VATT) 16, Government Institute for Economic Research Finland (VATT).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fer:wpaper:4. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anita Niskanen).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.