The design of a spatial Framework in multi‐ and interregional modelling is a crucial element of the research process. In this paper an attempt is made to present some empirical evidence with respect to two hypotheses, the scale hyothesis and the aggregation hypothesis. This will be achieved by estimating the parameters and testing the performance of a multiregional labour supply model for Austria. Five regionalisation approaches are specified for delineating (functional) labour market regions. The paper shows that it is by no means admissible to ignore possible effects of the spatial representation choice. The fundamental question of which regionalisation should be chosen should be decided on the basis of relevant evaluation criteria.

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This paper contains an analysis of a multiregional labour-supply model for Austria. In the approach suggested here attempts are made to combine the advantages of random-utility-based discrete choice theory and partial reduced-form estimation. Two recursive submodels, the labour-force participation submodel, and the commuting and employment submodel, are developed. Three different types of model specifications at the mesolevel are used to analyse the consequences of choosing a spatial framework of overlapping regional labour markets upon the model parameters, to investigate the usefulness of the model approach in relation to different regionalisation variants, and to carry out a sensitivity analysis with respect to the effects of the model parameters used to delineate the labour-market regions.