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

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  • 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. Copyright (c) 2007 the author(s). Journal compilation (c) 2007 RSAI.

Suggested Citation

  • 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
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    References listed on IDEAS

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    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. repec:bla:presci:v:95:y:2016:i:4:p:673-692 is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.
    5. repec:spr:soinre:v:134:y:2017:i:2:d:10.1007_s11205-016-1441-z is not listed on IDEAS
    6. Jouke van Dijk, 2009. "Progress in Regional Science," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 1-2, March.
    7. 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.
    8. Alpay Filiztekin, 2009. "Regional unemployment in Turkey," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 863-878, November.
    9. 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.
    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. repec:taf:specan:v:12:y:2017:i:2-3:p:138-160 is not listed on IDEAS
    13. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, March.
    14. 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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