Arbeitspapier

Spanish regional unemployment revisited: The role of capital accumulation

This paper provides new evidence for the evolution of regional unemployment rates in Spain over the 1980-2000 period. We argue that interactive dynamic systems of labour demand, wage setting, and labour force equations (i) allow for a richer interpretation of regional disparities, and (ii) can capture the unemployment effects of growing variables such as capital stock. After classifying the 17 Spanish regions into high and low unemployment groups using kernel and cluster techniques, we estimate a structural labour market model for each group and evaluate the unemployment contributions of investment, benefits, taxes, and the oil price. We find that the main driving force of regional unemployment swings is capital accumulation.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5012

Classification
Wirtschaft
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Unemployment: Models, Duration, Incidence, and Job Search
Subject
Regional unemployment
disparities
capital accummulation
kernel
cluster
Regionale Arbeitslosigkeit
Investition
Regionaler Arbeitsmarkt
Arbeitsnachfrage
Schätzung
Spanien

Event
Geistige Schöpfung
(who)
Bande, Roberto
Karanassou, Marika
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
Last update
20.09.2024, 8:21 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bande, Roberto
  • Karanassou, Marika
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2010

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