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Labour market status of job seekers in regional matching processes

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Sanna-Mari Hynninen ()
Abstract

This study examines the matching aspects of local labour markets focusing on the status of job seekers in the matching process, on spatial autocorrelation in labour market conditions of local labour markets, and on differences in matching processes between areas with permanently deviating unemployment rates. The data set is temporally, spatially, and by labour market positions of job seekers highly disaggregate monthly data from 171 Local Labour Offices (LLOs) in Finland over 12 years. According to the results, an increase in the share of long-term unemployed job seekers decreases matches, and an increase in the share of job seekers out of labour force increases successful matches in local labour markets. The matching process does not work in the same way in all areas, but on the contrary its functioning is dependent on the unemployment conditions. Effects of increases in the number of inputs on successful matches depend on the proportional share of that input in the area as well as on the composition of the stock of job seekers. The results also indicate the labour market conditions and matching processes across neighbouring LLOs being spatially autocorrelated.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p499.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p499

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  3. Lindeboom, Maarten & van Ours, Jan C & Renes, Gusta, 1994. "Matching Employers and Workers: An Empirical Analysis on the Effectiveness of Search," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 45-67, January. [Downloadable!] (restricted)
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  6. Turon, Helene & Simon Burgess, 2003. "Unemployment equilibrium and on-the-job search," Royal Economic Society Annual Conference 2003 208, Royal Economic Society. [Downloadable!]
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  7. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November. [Downloadable!] (restricted)
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  10. Broersma, Lourens, 1997. "Competition between Employed and Unemployed Job Searchers: Is There a Difference between the UK and the Netherlands?," Applied Economics Letters, Taylor and Francis Journals, vol. 4(3), pages 199-203, March. [Downloadable!] (restricted)
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  15. Sergio J. Rey, Brett D. Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor and Francis Journals, vol. 33(2), pages 143-156, April. [Downloadable!] (restricted)
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  17. Burgess, Simon M, 1993. "A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1190-204, September. [Downloadable!] (restricted)
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