Regional Unemployment and Productivity in Europe and the Us

39 Pages Posted: 26 Apr 2004

See all articles by Roberto Basile

Roberto Basile

University of L'Aquila - Faculty of Economics

Luca De Benedictis

University of Macerata; Luiss University

Date Written: April 25, 2004

Abstract

The existence and persistence of large spatial disparities in unemployment within national economies is a central issue in regional economics. Previous empirical analyses have largely disregarded the role of fundamentals. On the contrary in this paper we explore the link between labour productivity, international trade and regional unemployment differentials.

We base our empirical analysis on the predictions of a simple General Oligopolistic Equilibrium efficiency-wage trade model. Using semiparametric regression methods, controlling for industry-mix and labour force participation, we give evidence of a nonlinear negative relationship between labour productivity and regional unemployment, in the cases of European regions. Instead, no significant relationships between these variables have been found for the United States.

Keywords: Productivity, regional unemployment, oligopoly, nonparametrics

JEL Classification: C14, D50, F12, F16, J41, L13, R10

Suggested Citation

Basile, Roberto and De Benedictis, Luca, Regional Unemployment and Productivity in Europe and the Us (April 25, 2004). Available at SSRN: https://ssrn.com/abstract=535544 or http://dx.doi.org/10.2139/ssrn.535544

Roberto Basile

University of L'Aquila - Faculty of Economics ( email )

Roio Poggio, 67040
Italy

Luca De Benedictis (Contact Author)

University of Macerata ( email )

Via Crescimbeni 20
Macerata, MC 62100
Italy

HOME PAGE: http://docenti.unimc.it/luca.debenedictis

Luiss University ( email )

Viale Romania 32
Rome, 00198
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
143
Abstract Views
2,316
rank
257,542
PlumX Metrics