DP1259 Regional Unemployment Persistence (Spain, 1976-94)

Author(s): Samuel Bentolila, Juan F Jimeno
Publication Date: October 1995
Keyword(s): Regional Labour Adjustment, Unemployment Persistence
JEL(s): E24, J61
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1259

This paper examines the degree of persistence of regional relative unemployment. A theoretical model is built to explain the role of migration, labour-force participation, and real wage flexibility at the regional level, in determining such persistence. The model is used to account for the observed degree of persistence of regional relative unemployment in Spain, as compared to the US and the EU, also providing new estimates on real wage flexibility in Spanish regions.