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Spatial Unemployment Differentials in Colombia

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  • Ana María Díaz

Abstract

Between 1993 and 2005 Colombian municipalities experienced a polarization process, as municipalities’ unemployment rates followed different evolutions that are relative to the National average. This process was been accompanied by the creation of unemployment clusters. This paper uses a spatial Durbin model to explore the influence of various factors in determining differences in regional unemployment rates and proposes a decomposition methodology to quantify how much of the variation in unemployment rate is explained by the variables included in the model and how much is explained by the variables omitted. According to our findings, differences in labor demand, immigration rates, and urbanization are factors behind the observed municipal unemployment disparities. This paper also explores whether different groups of regions will react differently to a labor market impulse.

Suggested Citation

  • Ana María Díaz, 2016. "Spatial Unemployment Differentials in Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 76, February.
  • Handle: RePEc:col:000090:014290
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    Cited by:

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    3. Carlos Daniel Navarro, 2015. "Migración y Desempleo: Un análisis espacial para el Noroeste Argentino," Working Papers 14, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.

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    More about this item

    Keywords

    Local labor markets; unemployment differential; polarization; clustering; spatial econometrics; spatial Durbin model.;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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