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What drives unemployment disparities in European regions? A dynamic spatial panel approach

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  • Vicente Rios

Abstract

What drives unemployment disparities in European regions? A dynamic spatial panel approach. Regional Studies. This study analyzes unemployment differentials in European regions during the period 2000–11. To that end, a theoretical model with substantive spatial interactions among regions is developed. The solution implies a dynamic-spatial Durbin model specification including regional and institutional-level factors as explanatory variables. In conjunction with dynamic-spatial panel estimates, relative importance metrics are used to quantify the effect of regional disequilibrium, equilibrium and national-level factors. Relative importance analysis suggests that during the pre-crisis period, unemployment disparities were mainly driven by regional-level equilibrium factors. Nevertheless, labour market institutions are of major importance to explain increasing disparities during 2009–11.

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  • Vicente Rios, 2017. "What drives unemployment disparities in European regions? A dynamic spatial panel approach," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1599-1611, November.
  • Handle: RePEc:taf:regstd:v:51:y:2017:i:11:p:1599-1611
    DOI: 10.1080/00343404.2016.1216094
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    Cited by:

    1. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of Resilience in European Regions During the Great Recession: a Bayesian Model Averaging Approach," Discussion Papers 2018/235, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. repec:tou:journl:v:48:y:2018:p:53-70 is not listed on IDEAS

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