Spatial interaction and regional unemployment in Europe

Abstract

"Regional adjustment processes have been a central issue in economic research during the last years. The findings of empirical studies suggest that the adjustment mechanisms of regional labour markets in the EU and the US significantly differ. According to the results, low wage flexibility and limited labour mobility in European countries involve persistent unemployment differentials across regions. The present paper focuses on the spatial effects associated with these disparities. Regional labour markets are tightly linked by migration and commuting. Moreover, spillover effects based on interregional trade presumably tie the economic development of regions together. The existence of various spatial interaction phenomena, that are exposed to frictional effects of geographical distance, raises the question whether regional labour market conditions are characterised by a significant spatial dependence. The spatial association of regional unemployment is analysed by means of spatial econometric methods for a sample of European countries." (Author's abstract, IAB-Doku) ((en))

Cite article

Niebuhr, A. (2002): Spatial interaction and regional unemployment in Europe. In: I. Johansson & R. Dahlberg (Hrsg.) (2002): Uddevalla Symposium 2001 : regional economies in transition. Papers presented at the Uddevalla Symposium 2001, 14-16 June, Vänersborg, Sweden (University of Trollhättan/Uddevalla. Research report, 02, 01), p. 379-398.