Explaining the pattern of regional unemployment: The case of the Midi-Pyrénées region

Unemployment rates vary widely at the sub-regional level. We seek to explain why such variation occurs, using data for 174 districts in the Midi-Pyrénées region of France for 1990–1991. A set of explanatory variables is derived from theory and the voluminous literature. The best model includes a correction for spatially autocorrelated errors. Unemployment rates are higher in urban areas and, where per capita income is higher, are consistent with the view that unemployment differences largely reflect variations in “amenities.” Along with a lack of evidence of housing market rigidities, these suggest that subregional variations in unemployment are not mainly the result of labor market disequilibrium. Received: 9 July 1999 / Accepted: 30 October 2001     

Learning mobility grants and skill (mis)matching in the labour market: The case of the ‘Master and Back’ Programme

This paper looks at the geographical mobility of graduate students and their skill matching in the labour market. The paper assesses the impact of a learning mobility grant scheme funded by the European Social Fund in Sardinia (ex‐Objective 1 region in the Italian Mezzogiorno). The scheme aims to foster regional human capital and increase the employability of local graduates by covering the cost of post‐graduate studies in other regions or countries. The econometric analysis is based on a unique dataset that combines administrative data on beneficiaries with information from a dedicated survey. The results suggest that learning mobility grants can reinforce skill matching only if the problem of self‐selection of the beneficiaries is properly addressed.     

Spatial autoregressively distributed lag models: equivalent forms, estimation, and an illustrative commuting model

A spatial generalization of the (well-known special case from times series) Autoregressively Distributed lag model is defined. Equivalent forms—a Spatial Error Correction model, a Spatial Bewley model, and a Spatial Baardsen model—are considered. As none of these are consistently estimated by Ordinary Least Squares, an Instrument Variable estimation procedure is investigated using Monte Carlo simulation. It is found that there is a tendency to biased estimation results if the spatial autoregression is extremely low or extremely high. Finally, an empirical case illustrates the concepts discussed.     

The effect of unemployment, aggregate wages, and spatial contiguity on local wages: An investigation with German district level data

Despite spatial rigidity of collectively negotiated wages the local unemployment rate is found to have a significant negative impact on wages. This impact is shown to be consistent with both the wage-curve hypothesis and modern Phillips-curve modelling. Spatial contiguity effects are found in wages and unemployment and their neglect leads to an underestimation of the effect of local unemployment. Yet, the impact of local unemployment on wages turns out to be quite low as compared to studies for other countries. Some support for the hypothesis that negotiated wages suppress spatial wage flexibility comes from the finding that the impact of local unemployment on local wages decreases with its extent. Received: 13 December 1996 / Accepted: 8 June 1998     

The economic effects of facilitating the flow of rural workers to urban employment in China

Using a dynamic computable general equilibrium model of the Chinese economy we investigate the economic effects of relaxing China's household registration system over the period 2008 to 2020. The modelling results show that reducing the institutional restriction to rural labour movement will encourage rural workers to move from agricultural and rural non‐agricultural sectors into urban sectors. This enhanced labour movement will not only increase China's GDP and real consumption of households but it will also raise the real wages of agricultural and rural non‐agricultural workers. Although the real wage of rural migrant workers will increase at a slightly lower rate than in the baseline scenario, rural migrant workers remain considerably better paid than agricultural and rural non‐agricultural workers.     

Changing the economic landscape: The phenomenon of regional inversion in the US manufacturing sector

Regional inversion is the name given to the phenomenon whereby the traditional industrial areas of certain countries lose their weight in favor of what were formerly peripheral zones. Against this background our first objective is to offer a formal and rigorous definition of the concept of regional inversion from an econometric standpoint. To that end we relate such a process with the long-run concepts of convergence and catching-up. Secondly, we test this definition through the use of unit root statistics and apply these to demonstrate the presence of this phenomenon in some of the US two-digit SIC industries. Received: 4 December 2000 / Accepted: 20 August 2001 RID="*" ID="*" The authors would like to express their thanks to three anonymous referees for their helpful comments and observations on an earlier version of this article. Financial support from grants PB97-1028 and PB98-1614 of DGES is gratefully acknowledged.     

The regional distribution of Spanish unemployment: A spatial analysis

In this article we propose a set of tools for analysing the regional distribution of unemployment. As we are interested in the characteristics of the distribution as a whole, results from a traditional regression analysis are complemented with those obtained by estimating its external shape before and after being conditioned to factors underlying regional unemployment. In addition, we specifically consider the spatial characteristics of the distribution, and the empirical model we develop to determine explanatory factors includes spatial effects. This framework is applied to the study of the provincial distribution of unemployment rates in Spain. Results point to increasing spatial dependence in the distribution of regional unemployment rates, and a change in the factors causing regional differentials over the last decade.     

Unemployment by gender and gender catching‐up: Empirical evidence from the Italian regions*

We examine the dynamic behaviour of unemployment rates by gender and of the gender unemployment gap over the 1992–2009 period by Italian regions. The results from unit root tests with unknown structural breaks indicate that the gender unemployment gap has narrowed in most cases. However, the pace of catching‐up and the dynamic behaviour characterizing the individual unemployment series differ substantially from one region to another. We comment on our results in the light of the reforms applied in the Italian labour market over the last two decades.     

Internal migration and educational outcomes in Italy: Evidence from a cohort of youths

This paper analyses the educational outcomes and the human capital accumulation of a cohort of youths, focusing on their family origin. Using a unique survey of a Northern Italian province traditionally interested by large internal migration inflows especially from the South, we find that migrants' children have a higher probability of early dropout, especially in the case of males. This evidence calls into question the integration of internal migrants, for whom education plays a crucial role, even in a period in which foreign immigration seems to be of major concern.     

The role of gender,age and location in the values of work behind time use patterns in Santiago,Chile*

We apply a time assignment model system to estimate and analyse spatial differences in the values of work and leisure for segments of travellers who work in Santiago, Chile, a large, spatially segregated South American capital. The sample was obtained from the latest available Origin Destination Survey; it includes weekly time use and socio‐economic characteristics, which represent the differences across zones. Seventeen segments are defined according to gender, age, family structure and zone of residence. Positive values of the marginal utility of work are obtained for women and youngsters, and negative for men and elders. Women without children showed larger values than mothers. Results are explained in terms of income hierarchy and committed time.     

Social networks and regional recruitment of foreign labour: Firm recruitment methods and spatial sorting in Denmark*

This paper tests the hypothesis that social networks are crucial for regional recruitment and inflows of foreign labour. New survey data on 971 firms located in Region Southern Denmark show that the predominant recruitment method of foreign labour was through networks. Danish municipal data from 1997–2006 furthermore reveal spatial sorting since initial shares of employees with a foreign background out of total regional employment predict foreign labour inflow rates to regional employment. Thus, social networks appear crucial for the recruitment and inflows of foreign labour, suggesting that employee referrals and information about vacancies in local job markets are also important for foreign labour. Resumen Este artículo pone a prueba la hipótesis de que las redes sociales son cruciales para la contratación regional y los flujos de mano de obra extranjera. Nuevos datos de una encuesta sobre 971 empresas ubicadas en la Región de Dinamarca Meridional muestran que el método de contratación predominante de mano de obra extranjera fue a través de redes. Datos municipales daneses de 1997‐2006 revelan además una clasificación espacial, ya que las cuotas iniciales de empleados de origen extranjero respecto del empleo regional total predicen tasas de afluencia de mano de obra extranjera para el empleo regional. Por tanto, las redes sociales parecen ser cruciales para el reclutamiento y la afluencia de mano de obra extranjera, lo cual sugiere que las referencias de los empleados y la información sobre ofertas de empleo en los mercados laborales locales son también importantes para la mano de obra extranjera.      

The centralization index: A measure of local spatial segregation

Segregated areas may occur around an attractive park or a waste incinerator, but the magnitude and group membership of the people in closest proximity will likely be difierent. We therefore introduce a local segregation measure that can be applied to any location within a metropolitan area, and that can identify the group that is relatively more concentrated around that reference location. We further introduce an inference approach to identify the statistical significance of a particular segregation value. In an exploratory setting the index can be used to generate a map of hot spots, and seed the question: “why is this group significantly concentrated around that location?”     

Cost economies,urban patterns and population density: The case of public infrastructure for basic utilities

Determination of optimal population densities underlies the economic rationality when planning the provision of basic public infrastructure by local governments. Using econometric techniques based on the translog cost function, we investigate the existence of economies of scale, associated to a larger urban size in terms of population and housing, determine the effect of alternative urban patterns – compact or dispersed – on the cost of provision, and calculate optimal population densities as targets for urban planning. We illustrate the practicality of our model using Spanish municipal data, and unveil latent economies of scale and suboptimal urban densities due to excessive dispersion. Based on these findings we propose specific policy guidelines in terms of desirable urban structures.     

The confusing relationship between environmental policy and location behaviour of firms: A methodological review of selected case studies

The literature on the effects of environmental policy on the location behaviour of firms has so far failed to draw any firm conclusions. Different studies have shown that the effects may be zero, negative or positive. They always tend to be small. This paper argues that methodological issues form a major explanation for the contradictory results. It discusses the methodological strengths and weaknesses of data collection and secondary data analysis. Moreover, several typical studies are reviewed both in terms of methodology and findings. The paper finds that methodological issues tend to affect the results. The main substantive result is that at the present intensity of environmental policy plant closing is most likely to result, followed by reduced location of new firms whereas relocation is the least likely response. The results have to be interpreted with caution, however, because of methodological problems inherent to most studies.     

Labour market competitiveness and foreign direct investment: The case of Malaysia,Thailand and the Philippines

This article investigates whether labour market competitiveness affects the inflows of foreign direct investment (FDI) into the ASEAN economies Malaysia, Thailand and the Philippines. The analysis is based on a regression model using time series data on FDI, wages, the labour force, skills, R&D expenditure, the interest rate and several variables critical for economic development. The study shows that the labour market determinants differ between countries in terms of their role in FDI inflows. Thus analysis results suggest that, with regard to labour market competitiveness, different countries may require different policy recommendations in order to attract FDI inflows into their countries.Received: 2 October 2002, Accepted: 24 May 2003, JEL Classification: J240, J310, R230     

Urban growth,transportation and the spatial dimension of the labour market: A note

Recently, Duranton and Turner estimated the impact of interstate highways on the average growth of US cities between 1983 and 2003. By estimating a structural model, one of their striking points is that increasing a city's initial stock of highways by 10 per cent leads to a 1.5 per cent positive respond of the city's employment over the sample period. This note mainly argues that their investigation leaves out potential spillovers of labour input from neighbouring growth centres/cities in the steady‐state directly implied by the open city assumption. More specifically, this contribution readily extends Duranton and Turner's work by a general equilibrium effect induced by the urban system's labour market fluctuations which is a direct consequence of the open city assumption.     

A note on the equilibrium and optimum of a transitional urban economy: The case of China

This research note presents a simple urban model of the Chinese two-tier plan/market economy, and investigates the equilibrium and optimum by comparison with a standard urban model of the market economy. We show that the Chinese urban economy has a possibility of being out of equilibrium and becoming unstable when the amount of land assigned by the government to firms is too much relative to the labor assigned to them. Furthermore, the model indicates that, while the Chinese urban economy would have a greater total differential land rent than the market economy, the Chinese urban residents would be worse off in terms of their earned wage income. Received: 2 April 2001 / Accepted: 2 March 2002 RID="*" ID="*" The author is grateful to Eric J. Heikkila, Koichi Mera, John M. Quigley, and Komei Sasaki for their valuable comments. Special thanks are also due to Jacques Poot, Pacific Editor of this journal, and three anonymous referees, who gave very useful suggestions to improve this note. The author alone is responsible for any remaining errors.