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Integrated Analysis of Regional and National Unemployment Differentials in the European Union

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  • Annette S. Zeilstra
  • J. Paul Elhorst

Abstract

Zeilstra A. S. and Elhorst J. P. Integrated analysis of regional and national unemployment differentials in the European Union, Regional Studies . This study investigates the causes of variation in regional unemployment rates from a cross-country perspective. In the proposed, stylized theoretical framework, both regional- and national-level variables serve as explanatory variables. An econometric model of random and fixed coefficients of regional and national variables acknowledges that observations may be correlated in space and time and that some explanatory variables are not strictly exogenous. Using annual data pertaining to 142 regions across ten European Union countries during 1983-1997, it was found that regional and national variables are almost equally important and that unemployment cannot be addressed with a common policy.

Suggested Citation

  • Annette S. Zeilstra & J. Paul Elhorst, 2014. "Integrated Analysis of Regional and National Unemployment Differentials in the European Union," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1739-1755, October.
  • Handle: RePEc:taf:regstd:v:48:y:2014:i:10:p:1739-1755
    DOI: 10.1080/00343404.2012.708404
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
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    Cited by:

    1. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute of Labor Economics (IZA).
    2. Vicente Rios Ibañez, 2014. "What drives regional unemployment convergence?," ERSA conference papers ersa14p924, European Regional Science Association.
    3. Halleck Vega, Solmaria & Elhorst, J. Paul, 2016. "A regional unemployment model simultaneously accounting for serial dynamics, spatial dependence and common factors," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 85-95.
    4. Angulo, Ana & Burridge, Peter & Mur, Jesús, 2018. "Testing for breaks in the weighting matrix," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 115-129.
    5. Steve Bradley & Giuseppe Migali & Maria Navarro Paniagua, 2019. "Spatial variations and clustering in the rates of youth unemployment and NEET," Working Papers 262342718, Lancaster University Management School, Economics Department.
    6. A. M. Angulo & J. Mur & F. J. Trívez, 2018. "Measuring resilience to economic shocks: an application to Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 349-373, March.
    7. Steve Bradley & Giuseppe Migali & Maria Navarro Paniagua, 2020. "Spatial variations and clustering in the rates of youth unemployment and NEET: A comparative analysis of Italy, Spain, and the UK," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1074-1107, November.
    8. Román Mínguez & Roberto Basile & María Durbán, 2020. "An alternative semiparametric model for spatial panel data," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 29(4), pages 669-708, December.
    9. Filippa Bono & Maria Francesca Cracolici & Miranda Cuffaro, 2017. "A Hierarchical Model for Analysing Consumption Patterns in Italy Before and During the Great Recession," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 421-436, November.
    10. Román Mínguez & María L. & Roberto Basile, 2016. "Spatio-Temporal Autoregressive Semiparametric Model for the analysis of regional economic data," Working Papers LuissLab 16126, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    11. Rokicki, Bartlomiej & Blien, Uwe & Hewings, Geoffrey J.D. & thi Hong Van, Phan, 2021. "Is there a wage curve with regional real wages? An analysis for the US and Poland," Economic Modelling, Elsevier, vol. 102(C).
    12. Mehmet Güçlü, 2017. "Regional Unemployment Disparities in Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 94-108, June.

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