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Analysis of the relationship between regional labour markets in Russia using Okun’s model

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  • Vakulenko, Elena

    () (National Research University Higher School of Economics, Moscow, Russian Fed)

Abstract

We estimate Okun's model on panel data of Russian regions and reveal the role of regional interactions at its formation. We consider the 78 regions of Russia for the period 1998–2013 and estimate a wide range of spatial econometrics model specifications. The results show that Okun’s coefficient is underestimated if we don’t take into account the spatial interactions in the model. There is no reveal asymmetric adjustment change in the unemployment rate to rise or fall of GRP in the models with spatial interactions. We propose a new way of interpreting the results of spatial econometrics models: the concepts of autonomy and influence factors that allow to rank the regions according to their degree of independence in conducting their own policies and impact on the situation in other regions

Suggested Citation

  • Vakulenko, Elena, 2015. "Analysis of the relationship between regional labour markets in Russia using Okun’s model," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 40(4), pages 28-48.
  • Handle: RePEc:ris:apltrx:0276
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    References listed on IDEAS

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    Cited by:

    1. Vakulenko, E. & Gurvich, E., 2016. "Real Wage Flexibility in Russia: Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 67-92.

    More about this item

    Keywords

    Okun’s law; spatial econometrics; Russian regions;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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