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The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence

  • Fredriksson, Peter

This paper analyses the repercussions of region-specific shocks to labor demand. Active labor market programs have been targeted at high unemployment regions in Sweden, a fact that should influence the regional adjustment process. Fears have been expressed that some of the programs may have adverse effects on adjustment by, for instance, locking-in displaced workers in depressed regions. The empirical results indicate that Swedish regional adjustment has been comparatively rapid; labor mobility in response to shocks, for instance, appears to be high by European standards. On the whole, labor market programs do not seem to have impeded regional adjustment substantially. Copyright 1999 by Royal Economic Society.

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Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 51 (1999)
Issue (Month): 4 (October)
Pages: 623-48

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Handle: RePEc:oup:oxecpp:v:51:y:1999:i:4:p:623-48
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  1. Anders Forslund & Alan B. Krueger, 1994. "An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom," NBER Working Papers 4802, National Bureau of Economic Research, Inc.
  2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  3. Ohlsson, Henry, 1992. "Job creation measures as activist fiscal policy -- an empirical analysis of policy reaction behavior," European Journal of Political Economy, Elsevier, vol. 8(2), pages 269-280, May.
  4. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-14, November.
  5. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-31, October.
  6. Calmfors, Lars & Forslund, Anders, 1991. "Real-Wage Determination and Labour Market Policies: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 101(408), pages 1130-48, September.
  7. Geweke, John, 1988. "Antithetic acceleration of Monte Carlo integration in Bayesian inference," Journal of Econometrics, Elsevier, vol. 38(1-2), pages 73-89.
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