Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/103548 
Year of Publication: 
2014
Series/Report no.: 
ZEW Discussion Papers No. 14-083
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
We ask whether sectoral shocks and the subsequent labor reallocation are responsible for unemployment within selected European economies. Our measure of sectoral labor reallocation is adjusted for aggregate influences and the remaining variation is linked to unemployment in country specific dynamic models. For Spain, the ADL-model estimation reveals a significant impact of sectoral reallocation on unemployment that goes beyond usual business cycle patterns. In Italy, there is weaker yet detectable evidence for this mechanism. In Ireland, Portugal and France, no significant influence of sector level shocks on unemployment is found. The results emphasize the potential structural supply side policies have for reducing unemployment in Spain.
Subjects: 
unemployment
sectoral shocks
labor reallocation
Europe
JEL: 
E24
J62
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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