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Labour Market Institutions and Regional Unemployment Disparities

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  • Peter Huber

Abstract

We conduct a theoretically based, empirical analysis of the impact of national wage bargaining, labour market and housing market institutions as well as product market regulation on regional unemployment rate disparities. Using both national and regional data on unemployment rates for 14 EU countries for the period 1998 to 2009 we find a robust correlation between centralisation, net replacement rates and regional autonomy with the size of regional unemployment rate disparities within a country and a further potential role for minimum wages, generosity of old age and sickness benefits, marginal tax rates, housing market flexibility, employment protection and the costs of overtime contracts. In contrast to expectations only the regional autonomy index, net replacement rates, sickness benefits and employment protection are positively correlated with regional unemployment rate disparities, while the other robust variables are negatively correlated.

Suggested Citation

  • Peter Huber, 2013. "Labour Market Institutions and Regional Unemployment Disparities," WWWforEurope Working Papers series 29, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2013:m:7:d:0:i:29
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    Cited by:

    1. Di Cataldo, Marco & Rodríguez-Pose, Andrés, 2016. "What drives employment growth and social inclusion in EU regions?," CEPR Discussion Papers 11551, C.E.P.R. Discussion Papers.
    2. Michael Böheim & Anna Strauss & Teresa Weiss, 2015. "Moving towards a new growth model. Policy options," WWWforEurope Deliverables series 10, WWWforEurope.
    3. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving towards a new growth model," WWWforEurope Deliverables series 3, WWWforEurope.
    4. Gunther Tichy, 2015. "Protecting social inclusion and mobility in a low growth scenario," WWWforEurope Working Papers series 100, WWWforEurope.
    5. Harald Badinger & David Bailey & Lisa De Propris & Peter Huber & Jürgen Janger & Kurt Kratena & Hans Pitlik & Thomas Sauer & Renaud Thillaye & Jeroen van den Bergh, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition. Synthesis Report Part II," WWWforEurope Deliverables series 12, WWWforEurope.

    More about this item

    Keywords

    Regional labour markets; institutions; unemployment disparities;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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