Regional Matching Frictions and Aggregate Unemployment

Konferenzbeitrag

The study shows that a stochastic frontier approach applied to regional level data offers a convenient and interesting method to examine how regional differences in matching efficiency and structural factors contribute to aggregate unemployment. The study finds notable and time-wise stable differences in the matching efficiency across travel-to-work areas in Finland. If all areas were as efficient as the most efficient one, the number of hires would increase about 40 per cent. This would decrease the aggregate unemployment rate from the current 8.5 percent level to 6.0 per cent. If all the areas shared the same structural characteristics as the most favourable area, the aggregate unemployment rate would drop to 7.1 per cent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 46th Congress of the European Regional Science Association: "Enlargement, Southern Europe and the Mediterranean", August 30th - September 3rd, 2006, Volos, Greece

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hynninen, Sanna-Mari ; Kangasharju, Aki ; Pehkonen, Jaakko
• Event: Veröffentlichung
• (who): European Regional Science Association (ERSA)
• (where): Louvain-la-Neuve
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/118369
• Last update: 10.03.2025, 11:43 AM CET