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Regional Unemployment Clusters: Neighborhood and State Effects in Europe and North America

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  • Garcilazo, Jose Enrique

    (OECD)

  • Spiezia, Vincenzo

    (OECD)

Abstract

Recent nonparametric studies find that the regional distribution of unemployment rates is more dependent on geographic location (neighborhood effects) than on national factors (state effects). These results, however, do not control for stochastic dependency between neighborhood and state effects (joint effects) and do not provide any measure of their relative size. In this paper, we construct a simple measure that is invariant in space and across time and compare state, neighborhood, and joint effects in Europe and North America. We find that neighborhood effects are stronger than state effects in Europe, whereas in North America the size of the joint effect is such that one cannot say which effects prevail.

Suggested Citation

  • Garcilazo, Jose Enrique & Spiezia, Vincenzo, 2007. "Regional Unemployment Clusters: Neighborhood and State Effects in Europe and North America," The Review of Regional Studies, Southern Regional Science Association, vol. 37(3), pages 282-302.
  • Handle: RePEc:rre:publsh:v:37:y:2007:i:3:p:282-302
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    Cited by:

    1. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2015. "A Statistical Analysis of Heterogeneity on Labour Markets and Unemployment Rates in Colombia," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, August.
    2. Enrico Marelli & Roberto Patuelli & Marcello Signorelli, 2012. "Regional unemployment in the EU before and after the global crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 155-175, January.
    3. Jasper Van Dijk, 2014. "Determinants of Local Multipliers," ERSA conference papers ersa14p57, European Regional Science Association.
    4. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 231-250, June.
    5. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2014. "An Exploratory Analysis of Heterogeneity on Regional Labour Markets and Unemployment Rates in Colombia: An MFACT approach," Borradores de Economia 802, Banco de la Republica de Colombia.
    6. Stefano M. Iacus & Giuseppe Porro, 2015. "EU regional unemployment as a transnational matter: An analysis via the Gompertz diffusion processs," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 703-726, November.

    More about this item

    Keywords

    Regional; Unemployment; Unemployment Rate;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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