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Identifying Regional Labor Demand Shocks Using Sign Restrictions

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Author Info

  • Juessen, Falko

    ()
    (University of Wuppertal)

  • Linnemann, Ludger

    ()
    (TU Dortmund)

Abstract

We propose using sign restrictions to identify regional labor demand shocks in a panel VAR of US federal states. Observed migration responds significantly, but less persistently than the residual-based migration measure constructed by Blanchard and Katz (1992).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6767.

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Length: 10 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6767

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Keywords: regional labor markets; migration; panel VAR; sign restrictions;

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  1. Vera Gács & Peter Huber, 2005. "Quantity Adjustments in the Regional Labour Markets of EU Candidate Countries," WIFO Working Papers 254, WIFO.
  2. Bayer, Christian & Juessen, Falko, 2006. "On the Dynamics of Interstate Migration: Migration Costs and Self-Selection," Technical Reports 2006,38, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
  3. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-48, October.
  4. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  5. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers.
  6. Mark D. Partridge & Dan S. Rickman, 2006. "An SVAR Model of Fluctuations in U.S. Migration Flows and State Labor Market Dynamics," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 958–980, April.
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