Interregional differences in labor market participation
The paper analyzes the variation of gender-specific labor-market participation rates at the regional level. We first develop a search-theoretical model with inter-temporal optimization behavior of agents. The model suggests that a higher regional wage level fosters participation, while higher job insecurity as measured by the unemployment rate discourages workers. Moreover, a high wage dispersion increases the value of search and should lead to higher participation rates. Using a spatial econometric approach we investigate the determinants of gender-specific participation in a comprehensive empirical model where differences between West and East Germany are explicitly accounted for. We generally find that variation in regional participation rates in driven by economic forces. Unemployment depresses labor-market participation of male and female workers in both parts of the country, while a higher wage level stimulates it. This is in line with theoretical predictions. However, contrary to the implications of a model with risk-neutral individuals, our results show that higher wage dispersion in the left tail of the wage distribution tends to lower participation. We conclude that the inter-temporal search-theoretical framework assuming risk-neutral individuals is not able to cover all major aspects of participation behavior. Copyright Springer-Verlag 2006
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 26 (2006)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/10037|
|Order Information:||Web: http://link.springer.de/orders.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antecol, Heather, 2000. "An examination of cross-country differences in the gender gap in labor force participation rates," Labour Economics, Elsevier, vol. 7(4), pages 409-426, July.
- Badi Baltagi & Dong Li, 2001. "Double Length Artificial Regressions For Testing Spatial Dependence," Econometric Reviews, Taylor & Francis Journals, vol. 20(1), pages 31-40.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- repec:dgr:uvatin:2098089 is not listed on IDEAS
- Gerard J. van den Berg, 1998. "Empirical Inference with Equilibrium Search Models of the Labor Market," Tinbergen Institute Discussion Papers 98-089/3, Tinbergen Institute.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004.
"Spatial Heterogeneity and the Wage Curve revisited,"
Tinbergen Institute Discussion Papers
04-054/3, Tinbergen Institute.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "Spatial Heterogeneity And The Wage Curve Revisited," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 707-731.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "Spatial Heterogeneity and the Wage Curve Revisited," ERSA conference papers ersa04p115, European Regional Science Association.
- Gerard J. van den Berg & Geert Ridder, 1998.
"An Empirical Equilibrium Search Model of the Labor Market,"
Econometric Society, vol. 66(5), pages 1183-1222, September.
- Berg, G.J. & Ridder, G., 1993. "An empirical equilibrium search model of the labour market," Serie Research Memoranda 0039, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Pissarides, Christopher A, 1974. "Risk, Job Search, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1255-67, Nov.-Dec..
- Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
- Albrecht, James W & Axell, Bo, 1984.
"An Equilibrium Model of Search Unemployment,"
Journal of Political Economy,
University of Chicago Press, vol. 92(5), pages 824-40, October.
- Albrecht, James & Axell, Bo, 1983. "An Equilibrium Model of Search Unemployment," Working Papers 83-10, C.V. Starr Center for Applied Economics, New York University.
- Albrecht, James W & Axell, Bo, 1983. "An Equilibrium Model of Search Unemployment," Working Paper Series 99, Research Institute of Industrial Economics.
- Mortensen, Dale T. & Pissarides, Christopher A., 1999.
"New developments in models of search in the labor market,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627
- Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers 2053, C.E.P.R. Discussion Papers.
- Burda, Michael C. & Profit, Stefan, 1996.
"Matching across space: Evidence on mobility in the Czech Republic,"
Elsevier, vol. 3(3), pages 255-278, October.
- M. C. Burda & S. Profit, 1996. "Matching Across Space: Evidence on Mobility in the Czech Republik," SFB 373 Discussion Papers 1996,11, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Burda, Michael C & Profit, Stefan, 1996. "Matching Across Space: Evidence on Mobility in the Czech Republic," CEPR Discussion Papers 1364, C.E.P.R. Discussion Papers.
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
- Dale T. Mortensen & Christopher A. Pissarides, 1993.
"Job Creation and Job Destruction in the Theory of Unemployment,"
CEP Discussion Papers
dp0110, Centre for Economic Performance, LSE.
- Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
- Kim B. Clark & Lawrence H. Summers, 1982.
"Labor Force Participation: Timing and Persistence,"
NBER Working Papers
0977, National Bureau of Economic Research, Inc.
- Clark, Kim B & Summers, Lawrence H, 1982. "Labour Force Participation: Timing and Persistence," Review of Economic Studies, Wiley Blackwell, vol. 49(5), pages 825-44, Special I.
- Dale T. Mortensen, 1977. "Unemployment Insurance and Labor Supply Decisions," Discussion Papers 271, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Assar Lindbeck, 1996.
"The West European employment problem,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 132(4), pages 609-637, December.
- Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
When requesting a correction, please mention this item's handle: RePEc:spr:jahrfr:v:26:y:2006:i:1:p:25-50. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.