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|
|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.