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Persistence and Turnover in Regional Unemployment Disparities

Author

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  • Jaakko Pehkonen
  • Hannu Tervo

Abstract

PEHKONEN J. and TERVO H. (1998) Reg. Studies, 32 , 445-458, Persistence and turnover in regional unemployment disparities. This study investigates persistence and turnover in regional unemployment disparities in Finland by examining time-series data on 10 labour districts and 423 municipalities. The data on the labour districts indicates that regional unemployment disparities are rather persistent and that steady-state unemployment rates differ considerably across the districts. The results on the municipality level data, however, suggest the presence of substantial intra-distribution dynamics and that the degree of persistence is less profound than the labour district data indicates. In all, the results are more in line with the disequilibrium than the equilibrium view of the causes of regional unemployment differences. PEHKONEN J. et TERVO H. (1998)La persistance et l'evolution des ecarts du chomage regional, Reg. Studies 32 , 445- 458. Cette etude examine la persistance et l'evolution des ecarts du chomage regional en Finlande a partir des donnees exprimees en serie temporelle et provenant de dix bassins d'emploi et de 423 municipalites. Les donnees relatives aux bassins d'emploi laissent voir que les ecarts du chomage regional ont tendance a persister et que la stabilite des taux de chomage varient sensiblement a travers les bassins. Cependant, au niveau de la municipalite les resultats laissent voir la presence d'une dynamique non-negligeable au sein de la distribution et une persistance moins marquee que les bassins d'emploi ne laissent supposer. A tout prendre, les resultats s'accordent mieux a l'explication des ecarts du chomage regional qui remonte a la notion de d'equilibre plutot qu' a la notion d'equilibre. PEHKONEN J. und TERVO H. (1998) Fortbestand und Wandel regionaler Ungleichheiten der Erwerbslosigkeit, Reg. Studies 32 , 445-458. Dieser Aufsatz untersucht Fortbestand und Wandel regionaler Ungleichheiten der Erwerbslosigkeit in Finnland durch Uberprufung von Zeitseriendaten in zehn Arbeitsgebieten und 423 Gemeinden. Die Daten fur die Arbeitsgebiete zeigen, dass regionale Ungleichheiten der Erwerbslosigkeit ziemlich hartnackig sind, und gleichbleibende Erwerbslosigkeitsraten erheblich von einem Distrikt zum andern abweichen. Die Ergebnisse fur Daten auf Gemeindeebene legen jedoch das Vorhandensein einer betrachtlichen Dynamik innerhalb der Verteilung nahe, und dass das Ausmass des hartnackigen Fortbestands weniger schwerwiegend ist als die Arbeitsgebietsdaten andeuten. Insgesamt stimmen die Ergebnisse eher mit der Auffassung eines gestorten Gleichgewichts als der des Gleichgewichts bezuglich der Ursache regionaler Erwerbslosigkeitsunterschiede uberein.

Suggested Citation

  • Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
  • Handle: RePEc:taf:regstd:v:32:y:1998:i:5:p:445-458
    DOI: 10.1080/00343409850116844
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    Cited by:

    1. Böckerman, Petri, 2002. "Understanding Regional Productivity in a Nordic Welfare State: Does ICT Matter?," Discussion Papers 798, The Research Institute of the Finnish Economy.
    2. Robert Dixon & David Shepherd & James Thomson, 2001. "Regional Unemployment Disparities in Australia," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 93-102.
    3. Joanna TYROWICZ & Piotr W�JCIK, 2009. "Some Remarks On The Effects Of Active Labour Market Policies In Post-Transition," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
    4. Kari Hämäläinen & Petri Böckerman, 2004. "Regional Labor Market Dynamics, Housing, and Migration," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 543-568.
    5. Bande, Roberto & Fernández, Melchor & Montuenga, Víctor, 2008. "Regional unemployment in Spain: Disparities, business cycle and wage setting," Labour Economics, Elsevier, vol. 15(5), pages 885-914, October.
    6. Kari Hamalainen & Ulla Hamalainen, 2012. "Fighting persistent regional unemployment – The Paltamo Full Employment experiment," ERSA conference papers ersa12p786, European Regional Science Association.
    7. Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association.
    8. Manfred M. Fischer & Erich Maierhofer, 2001. "The tyranny of regional unemployment rates," ERSA conference papers ersa01p270, European Regional Science Association.
    9. Kangasharju, Aki & Pehkonen, Jaakko, 1999. "Employment-output link in Finland: evidence from regional-level data," ERSA conference papers ersa99pa304, European Regional Science Association.
    10. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
    11. Sari Pekkala & Jari Ritsila, 2001. "A Macroeconomic Analysis of Regional Migration in Finland, 1975-95," The Review of Regional Studies, Southern Regional Science Association, vol. 29(3), pages 226-240, Winter.
    12. repec:eee:ecosys:v:41:y:2017:i:2:p:203-214 is not listed on IDEAS
    13. Aki Kangasharju & Jaakko Pehkonen, 2001. "Employment-output link in Finland : evidence from regional data," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 41-50, Spring.
    14. Nicolaas Groenewold & Alfred Hagger, 2007. "Regional Unemployment Disparities: An Evaluation of Policy Measures," Economics Discussion / Working Papers 07-05, The University of Western Australia, Department of Economics.
    15. Hannu Tervo, 2000. "Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 343-360.
    16. Ramírez Carrera, Dionisio & Rodríguez, Gabriel, 2009. "Have European Unemployment Rates Converged?," Working Papers 2009-007, Banco Central de Reserva del Perú.
    17. Lehtonen Olli & Tykkyläinen Markku & Voutilainen Olli, 2012. "Root causes of rural decline in economic well-being in Finland," European Countryside, De Gruyter Open, vol. 4(3), pages 217-239, January.
    18. Petri Bockerman, 2004. "Does labour market reorganization reduce unemployment?," Applied Economics Letters, Taylor & Francis Journals, vol. 11(12), pages 745-748.
    19. J.Paul Elhorst, 2005. "Models for Dynamic Panels in Space and Time - an Application to Regional Unemployment in the EU," ERSA conference papers ersa05p81, European Regional Science Association.
    20. Sari Pekkala & Aki Kangasharju, 2002. "Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?," LABOUR, CEIS, vol. 16(2), pages 267-286, June.
    21. repec:dgr:rugsom:00c06 is not listed on IDEAS
    22. Prodromídis, Pródromos-Ioánnis K., 2012. "Modeling male and female employment policy in Greece from local data," Economic Modelling, Elsevier, vol. 29(3), pages 823-839.
    23. Böckerman, Petri & Hämäläinen, Kari, 2002. "Housing, dynamics of regional labour markets and migration," ERSA conference papers ersa02p159, European Regional Science Association.

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    Keywords

    Unemployment; Disparities; Regions; Convergence;

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