IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p499.html
   My bibliography  Save this paper

Labour market status of job seekers in regional matching processes

Author

Listed:
  • Sanna-Mari Hynninen

Abstract

This study examines the matching aspects of local labour markets focusing on the status of job seekers in the matching process, on spatial autocorrelation in labour market conditions of local labour markets, and on differences in matching processes between areas with permanently deviating unemployment rates. The data set is temporally, spatially, and by labour market positions of job seekers highly disaggregate monthly data from 171 Local Labour Offices (LLOs) in Finland over 12 years. According to the results, an increase in the share of long-term unemployed job seekers decreases matches, and an increase in the share of job seekers out of labour force increases successful matches in local labour markets. The matching process does not work in the same way in all areas, but on the contrary its functioning is dependent on the unemployment conditions. Effects of increases in the number of inputs on successful matches depend on the proportional share of that input in the area as well as on the composition of the stock of job seekers. The results also indicate the labour market conditions and matching processes across neighbouring LLOs being spatially autocorrelated.

Suggested Citation

  • Sanna-Mari Hynninen, 2005. "Labour market status of job seekers in regional matching processes," ERSA conference papers ersa05p499, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p499
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/499.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. Olivier Jean Blanchard & Peter Diamond, 1994. "Ranking, Unemployment Duration, and Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 417-434.
    3. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in ritain," Labour Economics, Elsevier, vol. 8(3), pages 313-333, June.
    4. Christopher A. Pissarides, 1994. "Search Unemployment with On-the-job Search," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 457-475.
    5. Karen Mumford & Peter N. Smith, 1999. "The Hiring Function Reconsidered: on Closing the Circle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 343-364, August.
    6. Broersma, Lourens & Van Ours, Jan C., 1999. "Job searchers, job matches and the elasticity of matching," Labour Economics, Elsevier, vol. 6(1), pages 77-93, March.
    7. Pekka Ilmakunnas & Hanna Pesola, 2003. "Regional Labour Market Matching Functions and Efficiency Analysis," LABOUR, CEIS, vol. 17(3), pages 413-437, September.
    8. Lourens Broersma, 1997. "Competition between employed and unemployed job searchers: is there a difference between the UK and The Netherlands?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 199-203.
    9. Layard, Richard & Bean, Charles, 1989. "Why Does Unemployment Persist?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(2), pages 371-396.
    10. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    11. Mumford, Karen & Smith, Peter N, 1999. "The Hiring Function Reconsidered: On Closing the Circle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 343-364, August.
    12. Burgess, Simon & Turon, Hélène, 2003. "Unemployment Equilibrium and On-the-Job Search," IZA Discussion Papers 753, Institute of Labor Economics (IZA).
    13. Budd, Alan & Levine, Paul & Smith, Peter, 1988. "Unemployment, Vacancies and the Long-term Unemployed," Economic Journal, Royal Economic Society, vol. 98(393), pages 1071-1091, December.
    14. Aki Kangasharju & Jaakko Pehkonen & Sari Pekkala, 2005. "Returns to scale in a matching model: evidence from disaggregated panel data," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 115-118.
    15. Burgess, Simon M, 1993. "A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1190-1204, September.
    16. Lindeboom, Maarten & van Ours, Jan C & Renes, Gusta, 1994. "Matching Employers and Workers: An Empirical Analysis on the Effectiveness of Search," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 45-67, January.
    17. Patricia M. Anderson & Simon M. Burgess, 2000. "Empirical Matching Functions: Estimation and Interpretation Using State-Level Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 93-102, February.
    18. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1371-1391.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ambra Poggi, 2019. "Regional labour markets in Spain: Can flexibility and local democracy reduce inefficiencies?," Papers in Regional Science, Wiley Blackwell, vol. 98(3), pages 1499-1516, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abid, Anis Bou & Drine, Imed, 2011. "Efficiency frontier and matching process on the labour market: Evidence from Tunisia," Economic Modelling, Elsevier, vol. 28(3), pages 1131-1139, May.
    2. Sanna-Mari Hynninen, 2009. "Matching in local labor markets: a stochastic frontier approach," Journal of Productivity Analysis, Springer, vol. 31(1), pages 15-26, February.
    3. Sanna‐Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2009. "Matching Inefficiencies, Regional Disparities, and Unemployment," LABOUR, CEIS, vol. 23(3), pages 481-506, September.
    4. Aki Kangasharju & Jaakko Pehkonen & Sari Pekkala, 2003. "Matching in thin labour markets: panel data evidence from Finland, 1991-2002," ERSA conference papers ersa03p208, European Regional Science Association.
    5. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    6. Yang Liu, 2011. "Labor market matching with heterogeneous job seekers in China," Economics Bulletin, AccessEcon, vol. 31(3), pages 1980-1992.
    7. Heidi Soininen, 2007. "Finnish Evidence of Changes in Labor Market Matching," Finnish Economic Papers, Finnish Economic Association, vol. 20(1), pages 57-71, Spring.
    8. Kangasharju, Aki & Hynninen, Sanna-Mari & Pehkonen, Jaakko, 2006. "Regional Matching Frictions and Aggregate Unemployment," Discussion Papers 383, VATT Institute for Economic Research.
    9. Poeschel, Friedrich, 2012. "The time trend in the matching function," IAB-Discussion Paper 201203, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Sanna-Mari Hynninen & Jukka Lahtonen, 2007. "Does population density matter in the process of matching heterogeneous job seekers and vacancies?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(5), pages 397-410, December.
    11. Sanna-Mari Ahtonen, 2004. "Matching across space: evidence from Finland," ERSA conference papers ersa04p205, European Regional Science Association.
    12. Hynninen, Sanna-Mari, 2009. "Is there a wage curve for the highly educated?," ISER Working Paper Series 2009-17, Institute for Social and Economic Research.
    13. Simonetta Longhi & Mark Taylor, 2014. "Employed and Unemployed Job Seekers and the Business Cycle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(4), pages 463-483, August.
    14. Karsten Albæk & Henrik Hansen, 2004. "The Rise in Danish Unemployment: Reallocation or Mismatch?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 515-536, September.
    15. Sunde, Uwe, 2002. "Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies," IZA Discussion Papers 520, Institute of Labor Economics (IZA).
    16. Longhi, Simonetta & Hynninen, Sanna-Mari, 2009. "Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?," ISER Working Paper Series 2009-20, Institute for Social and Economic Research.
    17. Karen Mumford & Peter N Smith, "undated". "Men, Women and the Hiring Function," Discussion Papers 99/16, Department of Economics, University of York.
    18. Michel Blanc & François Hild, 2008. "Analyse des marchés locaux du travail : du chômage à l'emploi," Économie et Statistique, Programme National Persée, vol. 415(1), pages 45-60.
    19. Longhi, Simonetta & P. Taylor, Mark, 2011. "Explaining differences in job search outcomes between employed and unemployed job seekers," ISER Working Paper Series 2011-17, Institute for Social and Economic Research.
    20. Elzbieta Antczak & Ewa Galecka-Burdziak & Robert Pater, 2016. "Spatial labour market matching," KAE Working Papers 2016-009, Warsaw School of Economics, Collegium of Economic Analysis.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p499. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.