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Unemployment Rates At the Regional and National Levels of the European Union: An Integrated Analysis

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  • Annette Zeilstra
  • Paul Elhorst

Abstract

This study investigates the causes of variation in regional unemployment rates in a cross-country perspective. The explanatory variables consist of both regional-level and macro-level variables. An appropriate econometric model of random coefficients for the former and fixed coefficients for the latter variables is developed, further taking into account that observations may be correlated over time and over space and that some of the explanatory variables are not strictly exogenous. On the basis of this model a regional unemployment rate equation is estimated, using data of 143 regions across 11 EU countries derived from Eurostat, 1983-1997, and national data on labour market institutions predominantly derived from the OECD.

Suggested Citation

  • Annette Zeilstra & Paul Elhorst, 2006. "Unemployment Rates At the Regional and National Levels of the European Union: An Integrated Analysis," ERSA conference papers ersa06p73, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa06p73
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    References listed on IDEAS

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    12. J. Paul Elhorst, 2003. "The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 709-748, December.
    13. Balestra, Pietro & Negassi, Syoum, 1992. "A Random Coefficient Simultaneous Equation System with an Application to Direct Foreign Investment by French Firms," Empirical Economics, Springer, vol. 17(1), pages 205-220.
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    Cited by:

    1. Reiner, Christian, 2010. "Regionale Arbeitsmärkte in der „Großen Rezession“: Dynamik regionaler Arbeitslosenquoten in Deutschland, Frankreich und Großbritannien im Krisenjahr 2009," Working Papers in Economics 2010-9, University of Salzburg.
    2. Sarantis LOLOS & Evangelia PAPAPETROU, 2012. "Unemployment disparities and persistence Assessing the evidence from Greek regions, 1981-2008," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 69-90.
    3. Reiner Christian, 2010. "Die „Große Rezession“ und ihre Auswirkungen auf regionale Arbeitslosenquoten: Das Beispiel von Deutschland, Frankreich und Großbritannien," ZFW – Advances in Economic Geography, De Gruyter, vol. 54(1), pages 114-133, October.

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