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- Unemployment In Europe And Regional Labor Fluctuations

Author

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  • Ana E. Lamo

    (Universidad de Alicante)

Abstract

This paper studies the relationship between region-specific shocks in the European labor market and unemployment rates in Europe. The existing empirical literature in this topic employs measures hardly useful to analyze the issue at hand. We use a model for non-stationary evolving distributions to identify disaggregate and aggregate disturbances and analyze their joint dynamics. Our main findings are that unemployment is lower the more alike shocks are across regions and the lower mobility of those regional shocks is. Further, the dynamics of regional shocks have substantial predictive power for aggregate unemployment fluctuations.

Suggested Citation

  • Ana E. Lamo, 1998. "- Unemployment In Europe And Regional Labor Fluctuations," Working Papers. Serie AD 1998-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1998-19
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1998-19.pdf
    File Function: Fisrt version / Primera version, 1998
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    Keywords

    regional fluctuations; geographical region; unemployment; mismatch index; large crosssection.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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