Regional Unemployment and Productivity in Europe and the US
AbstractThe existence and persistence of large spatial disparities in un-employment within national economies is a central issue in regional economics. Previous empirical analyses have largely disregarded the role of fundamentals. On the contrary in this paper we explore the link between labour productivity, international trade and regional un-employment differentials. We base our empirical analysis on the predictions of a simple General Oligopolistic Equilibrium effciency-wage trade model. Using semi parametric regression methods, controlling for industry-mix and labour force participation, we give evidence of a non linear negative relationship between labour productivity and regional unemployment, in the cases of European regions. Instead, no significant relationships between these variables have been found for the United States. Keywords: Productivity, Regional Unemployment, Oligopoly, Non parametrics. JEL Classification: C14, D50, F12, F16, J41, L13, R10.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p38.
Date of creation: Aug 2004
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Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-EEC-2005-11-09 (European Economics)
- NEP-EFF-2005-11-09 (Efficiency & Productivity)
- NEP-GEO-2005-11-09 (Economic Geography)
- NEP-INT-2005-11-09 (International Trade)
- NEP-LAB-2005-11-09 (Labour Economics)
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