Regional Unemployment and Productivity in Europe and the US
The existence and persistence of large spatial disparities in un-employment within national economies is a central issue in regional economics. Previous empirical analyses have largely disregarded the role of fundamentals. On the contrary in this paper we explore the link between labour productivity, international trade and regional un-employment differentials. We base our empirical analysis on the predictions of a simple General Oligopolistic Equilibrium effciency-wage trade model. Using semi parametric regression methods, controlling for industry-mix and labour force participation, we give evidence of a non linear negative relationship between labour productivity and regional unemployment, in the cases of European regions. Instead, no significant relationships between these variables have been found for the United States. Keywords: Productivity, Regional Unemployment, Oligopoly, Non parametrics. JEL Classification: C14, D50, F12, F16, J41, L13, R10.
|Date of creation:||Aug 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Diego Puga, 2002.
"European regional policies in light of recent location theories,"
Journal of Economic Geography,
Oxford University Press, vol. 2(4), pages 373-406, October.
- Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
- Roberto Basile & Sergio De Nardis & Alessandro Girardi, 2003. "Dinamiche di sviluppo nel centro e nella periferia d'Europa: il ruolo delle politiche strutturali," Rivista di Politica Economica, SIPI Spa, vol. 93(4), pages 89-134, July-Augu.
- Niebuhr, Annekatrin, 2002. "Spatial dependence of regional unemployment in the European Union," HWWA Discussion Papers 186, Hamburg Institute of International Economics (HWWA).
- Marc J. Melitz, 2003.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
Econometric Society, vol. 71(6), pages 1695-1725, November.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Decressin, Jörg & Fatás, Antonio, 1994.
"Regional Labour Market Dynamics in Europe,"
CEPR Discussion Papers
1085, C.E.P.R. Discussion Papers.
- Bean, Charles R, 1994.
"European Unemployment: A Survey,"
Journal of Economic Literature,
American Economic Association, vol. 32(2), pages 573-619, June.
- Taylor, Jim & Bradley, Steve, 1997. "Unemployment in Europe: A Comparative Analysis of Regional Disparities in Germany, Italy and the UK," Kyklos, Wiley Blackwell, vol. 50(2), pages 221-45.
- Lawrence F. Katz & Olivier Blanchard, 1999.
"Wage Dynamics: Reconciling Theory and Evidence,"
American Economic Review,
American Economic Association, vol. 89(2), pages 69-74, May.
- J. Peter Neary, 2002.
"Competitive versus comparative advantage,"
200219, School of Economics, University College Dublin.
- Hoon, Hian Teck, 2001. "Adjustment of wages and equilibrium unemployment in a Ricardian global economy," Journal of International Economics, Elsevier, vol. 54(1), pages 193-209, June.
- Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
- Lucio R. Pench & Paolo Sestito & Elisabetta Frontini, 1999. "Some unpleasant arithmetics of regional unemployment in the EU. Are there any lessons for EMU?," European Economy - Economic Papers 134, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- repec:rus:hseeco:122439 is not listed on IDEAS
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Ron Martin, 1997. "Regional Unemployment Disparities and their Dynamics," Regional Studies, Taylor & Francis Journals, vol. 31(3), pages 237-252.
- Basile, Roberto & Padoa Schioppa, Fiorella Kostoris, 2002. "Unemployment Dynamics of the 'Mezzogiornos of Europe': Lessons for the Mezzogiorno of Italy," CEPR Discussion Papers 3594, C.E.P.R. Discussion Papers.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa04p38. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.