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Labour force participation rates at the regional and national levels of the European Union: An integrated analysis


  • J. Paul Elhorst
  • Annette S. Zeilstra


Abstract. This study investigates the causes of variation in regional labour force participation rates in a cross‐country perspective. A microeconomic framework of the labour force participation decision is aggregated across individuals to obtain an explanatory model of regional participation rates in which both regional‐level and national‐level variables serve as explanatory variables. An appropriate econometric model of random coefficients for the regional variables and fixed coefficients for the national variables is developed, further taking into account that observations may be correlated over time and in space and that some of the explanatory variables are not strictly exogenous. This model is estimated for men and for women, using annual 1983–1997 Eurostat data from 157 regions across 13 EU countries. The hypotheses that regional participation rates in the EU are determined by a common structure and that labour force participation can be encouraged by a common policy must be strongly rejected.

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  • J. Paul Elhorst & Annette S. Zeilstra, 2007. "Labour force participation rates at the regional and national levels of the European Union: An integrated analysis," Papers in Regional Science, Wiley Blackwell, vol. 86(4), pages 525-549, November.
  • Handle: RePEc:bla:presci:v:86:y:2007:i:4:p:525-549
    DOI: 10.1111/j.1435-5957.2007.00136.x

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    References listed on IDEAS

    1. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
    2. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
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    Cited by:

    1. José M. Pastor & Carlos Peraita & Francisco Pérez, 2016. "Estimating the long-term economic impacts of Spanish universities on the national economy," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 673-692, November.
    2. Alpay Filiztekin, 2009. "Regional unemployment in Turkey," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 863-878, November.
    3. Yolanda Pena‐Boquete, 2009. "A comparative analysis of the evolution of gender wage discrimination: Spain vs. Galicia," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 161-180, March.
    4. Prodromídis Pródromos-Ioánnis, 2010. "Analysing Local Employment and Unemployment in Greece Under Conventional Zoning Regimes and Partitions Extracted from the Data," European Spatial Research and Policy, Sciendo, vol. 17(1), pages 61-91, June.
    5. Enrique López-Bazo & Elisabet Motellón, 2013. "The regional distribution of unemployment: What do micro-data tell us?," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 383-405, June.
    6. Filippa Bono & Maria Francesca Cracolici & Miranda Cuffaro, 2017. "A Hierarchical Model for Analysing Consumption Patterns in Italy Before and During the Great Recession," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 421-436, November.
    7. Fernando BRUNA & Isabel NEIRA & Marta PORTELA, 2019. "Horizontal And Vertical Contexts On Europeans’ Well-Being," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 19(2), pages 37-56.
    8. Marco Percoco, 2016. "Labour Market Institutions: Sensitivity to the Cycle and Impact of the Crisis in European Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 375-385, July.
    9. Jouke Van Dijk, 2009. "Progress in Regional Science," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 1-2, March.
    10. Choudhry, Misbah T. & Elhorst, J. Paul, 2010. "Demographic transition and economic growth in China, India and Pakistan," Economic Systems, Elsevier, vol. 34(3), pages 218-236, September.
    11. Giuseppe Arbia & Bernard Fingleton, 2008. "New spatial econometric techniques and applications in regional science," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 311-317, August.
    12. Solmaria Halleck Vega & J. Paul Elhorst, 2017. "Regional labour force participation across the European Union: a time–space recursive modelling approach with endogenous regressors," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(2-3), pages 138-160, July.
    13. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, March.
    14. Claudia Münch & Sweder van Wijnbergen, 2009. "Education and Labor Market Activity of Women: An Age-Group Specific Empirical Analysis," Tinbergen Institute Discussion Papers 09-099/2, Tinbergen Institute.
    15. Tingzhu Li & Ran Liu & Wei Qi, 2019. "Regional Heterogeneity of Migrant Rent Affordability Stress in Urban China: A Comparison between Skilled and Unskilled Migrants at Prefecture Level and Above," Sustainability, MDPI, Open Access Journal, vol. 11(21), pages 1-26, October.
    16. An Liu & Inge Noback, 2011. "Determinants of regional female labour market participation in the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 641-658, December.

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