Regional Unemployment Clusters: Neighborhood and State Effects in Europe and North America

Garcilazo, Jose Enrique; Spiezia, Vincenzo

doi:10.52324/001c.8298

Review of Regional Studies

2007

DOI: 10.52324/001c.8298

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Regional Unemployment Clusters: Neighborhood and State Effects in Europe and North America

Jose Enrique Garcilazo¹,

Vincenzo Spiezia²

Abstract: Recent nonparametric studies find that the regional distribution of unemployment rates is more dependent on geographic location (neighborhood effects) than on national factors (state effects). These results, however, do not control for stochastic dependency between neighborhood and state effects (joint effects) and do not provide any measure of their relative size. In this paper, we construct a simple measure that is invariant in space and across time and compare state, neighborhood, and joint effects in Europ… Show more

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Cited by 5 publications

References 20 publications

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Regional unemployment in the EU before and after the global crisis

Marelli¹,

Patuelli²,

Signorelli³

2012

Post-Communist Economies

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In this paper we empirically assess the evolution for the EU regions of both employment and unemployment before and after the Global Crisis. After a review of the literature on the theories and key determinants of regional unemployment, we shall overview the main findings concerning the labour market impact of the Global Crisis. The empirical analysis will initially be carried out at the national level including all EU countries; subsequently, we shall focus on the EU regions (at the NUTS-2 level), in order to detect possible changes in the dispersion of regional unemployment rates after the crisis. Our econometric investigations aim to assess the effect, on labour market performance, of previous developments in regional labour markets time series, as well as the importance of structural characteristics of the labour markets, in terms of the sectoral specialization of the regional economies. In fact, the local industry mix may have played a crucial role in shaping labour market performance in response to the crisis. In addition, we consider further characteristics of the regional labour markets, by including indicators of the level of precarization of labour and of the share of long-term unemployed, as indicators of the efficiency of the local labour markets. From a methodological viewpoint, we exploit eigenvector decomposition-based spatial filtering techniques, which allow us to greatly reduce unobserved variable bias -a significant problem in cross-sectional models -by including indicators of latent unobserved spatial patterns. Finally, we render a geographical description of the heterogeneity influence of past labour market performance over the crisis period, showing that the past performance has a differentiated impact on recent labour market developments.

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Regional unemployment in the EU before and after the global crisis

Marelli¹,

Patuelli²,

Signorelli³

2012

Post-Communist Economies

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Determinants of youth unemployment in Russian regions

Demidova

Signorelli

2012

Post-Communist Economies

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EU regional unemployment as a transnational matter: An analysis via the Gompertz diffusion processs

Iacus

Porro

2015

Papers in Regional Science

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At the end of 1990s, Danny Quah devoted several papers to the analysis of polarization and stratification in the convergence processes of economies, creating the image of the 'convergence clubs' and suggesting the importance of studying the distribution dynamics of the macroeconomic variables. As for the labour markets, Overman and Puga (2002) showed that a progressive polarization of unemployment was in fact occurring among the European regions in 1986-1996, causing a phenomenon of cross-border clusterization. Here we propose to analyse the evolution of the unemployment rates of the EU 27 regions in the last two decades assuming that the unemployment rates evolve according to a Gompertz stochastic process. The estimated parameters of the process -intrinsic growth rate, deceleration factor, volatility -represent the evolutionary path of the unemployment rate and allow for estimating the steady state of the process. A cluster analysis is performed on the steady state values of the unemployment rates. The analysis confirms the emergence of several 'convergence clubs' among the European regional labour markets, which are compared to the clusters resulting from the more traditional clusterization on the current unemployment rates.JEL classification: R11, R23, C20

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Regional Unemployment Clusters: Neighborhood and State Effects in Europe and North America

Cited by 5 publications

References 20 publications

Regional unemployment in the EU before and after the global crisis

Regional unemployment in the EU before and after the global crisis

Determinants of youth unemployment in Russian regions

EU regional unemployment as a transnational matter: An analysis via the Gompertz diffusion processs

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