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Okun’S Law In The French Regions: A Cross-Regional Comparison

Author

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  • Marie-Estelle Binet

    (University of Rennes 1 - CREM (UMR 6211 CNRS))

  • François Facchini

    (Centre d'Economie de la Sorbonne, University of Paris 1)

Abstract

This article tackles one central issue in the regional science literature: the persistence of regional disparities in unemployment within national economies. Our approach is original as Okun’s coefficients are estimated for each of the 22 administrative French regions over the period 1990–2008, taking into account cross-regional disparities in a panel data specification. Estimates show that the coefficients exhibit regional differences. Indeed, Okun’s law is confirmed in fourteen regions, although it does not hold in the other eight regions. Finally, region-specific factors that explain the results that are not significant are identified, and policies to reduce unemployment in French regions are examined.

Suggested Citation

  • Marie-Estelle Binet & François Facchini, 2012. "Okun’S Law In The French Regions: A Cross-Regional Comparison," Economics Working Paper Archive (University of Rennes & University of Caen) 201222, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201222
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Okun’s law; regional labour markets; panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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