Spatial Dependence in Local Unemployment Rates

Posted: 18 Jun 2008

See all articles by Eleonora Patacchini

Eleonora Patacchini

Einaudi Institute for Economics and Finance (EIEF) ; IZA Institute of Labor Economics

Zenou Yves

affiliation not provided to SSRN

Date Written: March 2007

Abstract

By explicitly considering the spatial dimension of local regional labor markets, we develop a simple dynamic model that explains the spatial correlation between unemployment rates. We then test this model by using UK local data. Our evidence shows a significant spatial dependence that has been growing over time and characterized by a low distance decay. Highly localized effects are explained by commuting flows. These results are consistent with the theoretical model.

Keywords: unemployment, commuting flows, spatial correlation, dynamic panel data models, JEL classifications: C21, C23, J64, R12

Suggested Citation

Patacchini, Eleonora and Yves, Zenou, Spatial Dependence in Local Unemployment Rates (March 2007). Journal of Economic Geography, Vol. 7, Issue 2, pp. 169-191, 2007, Available at SSRN: https://ssrn.com/abstract=1147460 or http://dx.doi.org/10.1093/jeg/lbm001

Eleonora Patacchini (Contact Author)

Einaudi Institute for Economics and Finance (EIEF) ( email )

Via Due Macelli, 73
Rome, 00187
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Zenou Yves

affiliation not provided to SSRN

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