Abstract

http://ssrn.com/abstract=2039651
 
 

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Benchmarking Regions: Estimating the Counterfactual Distribution of Labor Market Outcomes


Bernd Fitzenberger


University of Freiburg; Institute for the Study of Labor (IZA)

Marina Dimitrova Furdas


affiliation not provided to SSRN


IZA Discussion Paper No. 6465

Abstract:     
This paper develops and implements a new benchmarking approach for labor market regions. Based on panel data for regions, we use nonparametric matching techniques to account for observed labor market characteristics and for spatial proximity. As the benchmark, we estimate the counterfactual distribution of labor market outcomes for a region based on outcomes of similar regions. This allows to measure both the rank (relative performance) and the absolute performance based on the actual outcome for a region. Our outcome variable of interest is the hiring rate among the unemployed. We implement different similarity measures to account for differences in labor market conditions and spatial proximity, and we choose the tuning parameters in our matching approach based on a cross-validation procedure. The results show that both observed labor market characteristics and spatial proximity are important features to successfully match regions. Specifically, the modified Zhao (2004) distance measure and geographic distance in logs work best in our applications. Our estimated performance measures remain quite stable over time.

Number of Pages in PDF File: 56

Keywords: matching function, regional employment offices, performance measurement, nonparametric matching, conditional quantile positions

JEL Classification: C14, J68, R50

working papers series





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Date posted: April 14, 2012  

Suggested Citation

Fitzenberger, Bernd and Furdas, Marina Dimitrova, Benchmarking Regions: Estimating the Counterfactual Distribution of Labor Market Outcomes. IZA Discussion Paper No. 6465. Available at SSRN: http://ssrn.com/abstract=2039651

Contact Information

Bernd Fitzenberger (Contact Author)
University of Freiburg (Germany) ( email )
Fahnenbergplatz
Freiburg, D-79085
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Marina Dimitrova Furdas
affiliation not provided to SSRN ( email )
Feedback to SSRN


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References:  19
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