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Explaining regional unemployment differences in Germany: A spatial panel data analysis

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  • Lottmann, Franziska

Abstract

This paper analyzes determinants for regional differences in German unemployment rates. We specify a spatial panel model to avoid biased and inefficient estimates due to spatial dependence. Additionally, we control for temporal dynamics in the data. Our study covers the whole of Germany as well as East andWest Germany separately. We exploit district-level data on 24 possible explanatory variables for the period from 1999 until 2007. Our results suggest that the spatial dynamic panel model is the best model for this analysis. Furthermore, we find that German regional unemployment is of disequilibrium nature, which justifies political interventions.

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  • Lottmann, Franziska, 2012. "Explaining regional unemployment differences in Germany: A spatial panel data analysis," SFB 649 Discussion Papers 2012-026, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2012-026
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    Cited by:

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    3. Roberto Basile & Alessandro Girardi & Marianna Mantuano & Giuseppe Russo, 2016. "Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces," CSEF Working Papers 460, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Olga A. Demidova, 2014. "The asymmetric spatial effects for eastern and western regions of Russia," HSE Working papers WP BRP 50/EC/2014, National Research University Higher School of Economics.
    5. Demidova, Olga, 2021. "Methods of spatial econometrics and evaluation of government programs effectiveness," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 107-134.
    6. Demidova, Olga, 2014. "Spatial-autoregressive model for the two groups of related regions (eastern and western parts of Russia)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 34(2), pages 19-35.
    7. César Augusto MERCHÁN HERNÁNDEZ, 2014. "Desempleo y ocupación en las ciudades colombianas. Un ejercicio con datos panel," Archivos de Economía 11212, Departamento Nacional de Planeación.
    8. Nadia Granato & Anette Haas & Silke Hamann & Annekatrin Niebuhr, 2015. "The Impact Of Skill‐Specific Migration On Regional Unemployment Disparities In Germany," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 513-539, September.
    9. Mehmet Güçlü, 2017. "Regional Unemployment Disparities in Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 94-108, June.

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    More about this item

    Keywords

    regional unemployment; spatial dependence; spatial panel models; Germany;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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