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On the Significance of Labor Reallocation for European Unemployment: Evidence from a Panel of 15 Countries

Author

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  • Dimitrios Bakas

    (Nottingham Business School, Nottingham Trent University, UK; The Rimini Centre for Economic Analysis, Italy)

  • Theodore Panagiotidis

    (Department of Economics, University of Macedonia, Greece; The Rimini Centre for Economic Analysis, Italy)

  • Gianluigi Pelloni

    (Department of Economics, University of Bologna, Italy; Wilfrid Laurier University, Canada; Johns Hopkins University, SAIS Bologna Center, Italy; The Rimini Centre for Economic Analysis, Italy)

Abstract

We explore the macroeconomic effects of sectoral shifts for a set of 15 European countries. An extensive panel is constructed that allows us to assess the effect of labor reallocation in the European context. Indexes of labor market turbulence based on alternative sectoral disaggregation are constructed. The effect of labor reallocation on unemployment is found to be positive and significant in all different specifications. This remains robust when we consider measures of volatility in the model.

Suggested Citation

  • Dimitrios Bakas & Theodore Panagiotidis & Gianluigi Pelloni, 2016. "On the Significance of Labor Reallocation for European Unemployment: Evidence from a Panel of 15 Countries," Working Paper series 16-01, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:16-01
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    References listed on IDEAS

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    Cited by:

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    2. Pastore, Francesco & Semerikova, Elena, 2020. "It’s the way people move! Labour migration as an adjustment device in Russia," GLO Discussion Paper Series 445, Global Labor Organization (GLO).
    3. Azqueta-Gavaldón, Andrés, 2017. "Developing news-based Economic Policy Uncertainty index with unsupervised machine learning," Economics Letters, Elsevier, vol. 158(C), pages 47-50.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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