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The Dynamics of Regional Labour Markets and Active Labour Market Policy: Swedish Evidence

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  • Fredriksson, P.

Abstract

This paper analyses the repercussions of region-specific shocks to labor demand. Active labor market programs have been targeted at high unemployment regions in Sweden, a fact that should influence the regional adjustment process. Fears have been expressed that some of the programs may have adverse effects on adjustment by, for instance, locking-in displaced workers in depressed regions. The empirical results indicate that Swedish regional adjustment has been comparatively rapid; labor mobility in response to shocks, for instance, appears to be high by European standards. On the whole, labor market programs do not seem to have impeded regional adjustment substantially. Copyright 1999 by Royal Economic Society.
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Suggested Citation

  • Fredriksson, P., 1995. "The Dynamics of Regional Labour Markets and Active Labour Market Policy: Swedish Evidence," Papers 1995-20, Uppsala - Working Paper Series.
  • Handle: RePEc:fth:uppaal:1995-20
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    Keywords

    LABOUR MARKET; REGIONAL ECONOMY;

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