Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55207
Authors: 
Bande, Roberto
Karannassou, Marika
Year of Publication: 
2010
Series/Report no.: 
Working Paper // School of Economics and Finance, Queen Mary, University of London 666
Abstract: 
This paper provides new evidence for the evolution of regional unemployment rates in Spain over the 1980-2000 period. We argue that interactive dynamic systems of labour demand, wage setting, and labour force equations (i) allow for a richer interpretation of regional disparities, and (ii) can capture the unemployment effects of growing variables such as capital stock. After classifying the 17 Spanish regions into high and low unemployment groups using kernel and cluster techniques, we estimate a structural labour market model for each group and evaluate the unemployment contributions of investment, benefits, taxes, and the oil price. We find that the main driving force of regional unemployment swings is capital accumulation.
Subjects: 
regional unemployment
disparities
capital accummulation
kernel
cluster
JEL: 
R23
J64
Document Type: 
Working Paper

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