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The nonlinear distribution of employment across municipalities

Author

Listed:
  • Faustino Prieto

    (University of Cantabria)

  • José María Sarabia

    (University of Cantabria)

  • Enrique Calderín-Ojeda

    (The University of Melbourne)

Abstract

In this paper, the nonlinear distribution of employment across Spanish municipalities is analyzed. Also, we explore new properties of the family of generalized power law (GPL) distributions and explore its hierarchical structure, then we test its adequacy for modeling employment data. A new subfamily of heavy-tailed GPL distributions that is right tail equivalent to a Pareto (power-law) model is derived. Our findings show on the one hand that the distribution of employment across Spanish municipalities follows a power-law behavior in the upper tail and, on the other hand, the adequacy of GPL models for modeling employment data in the whole range of the distribution.

Suggested Citation

  • Faustino Prieto & José María Sarabia & Enrique Calderín-Ojeda, 2021. "The nonlinear distribution of employment across municipalities," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 287-307, April.
    • Handle: RePEc:spr:jeicoo:v:16:y:2021:i:2:d:10.1007_s11403-020-00294-2
    DOI: 10.1007/s11403-020-00294-2
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    More about this item

    Keywords

    Labor market; Municipalities; Generalized power-law models; Complex adaptive systems;
    All these keywords.

    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
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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