IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The evolution of regional unemployment in the EU. An analysis via the Gompertz diffusion process

  • Stefano Maria IACUS

    ()

  • Giuseppe PORRO

    ()

At the end of Nineties, Danny Quah devoted several papers to the analysis of polarization and stratification in the convergence processes of economies, creating the image of the ``convergence clubs'' and suggesting the importance of studying the distribution dynamics of the macroeconomic variables. As for the labor markets, Overman and Puga (2002) showed that a progressive polarization of unemployment was in fact occurring among the European regions in 1986-1996, causing a phenomenon of cross-border clusterization of the European regions. Here we propose to analyze the evolution of the unemployment rates of the EU27 regions in the last two decades assuming that the unemployment rates evolve according to a Gompertz stochastic process. The estimated parameters of the process - intrinsic growth rate, deceleration factor, volatility - represent the evolutionary path of the unemployment rate and allow for estimating the steady state of the process. A cluster analysis is performed on the steady state values of the unemployment rates. The analysis confirms the emergence of several ``convergence clubs'' among the European regional labor markets, which are compared to the cluster resulting from the more traditional clusterization on the current unemployment rates.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://wp.demm.unimi.it/tl_files/wp/2012/DEMM-2012_017wp.pdf
Download Restriction: no

Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2012-17.

as
in new window

Length:
Date of creation: 10 Aug 2012
Date of revision:
Handle: RePEc:mil:wpdepa:2012-17
Contact details of provider: Postal: Via Conservatorio 7, I-20122 Milan - Italy
Phone: +39 02 50321522
Fax: +39 02 50321505
Web page: http://www.demm.unimi.it

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2012-17. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.