Employment and Population in European Union: Econometric Models and Causality Tests

Eva Aguayo and M. Carmen Guisan ()

Economic Development from University of Santiago de Compostela. Faculty of Economics and Business. Econometrics.

Abstract: We analyse the interdependence between non-agrarian employment, real value-added and population in 98 European regions, by means of a pool of data for the period 1985-1995, and in 5 EU countries with a pool for 1961-97. We test causality by means of Hausman´s test in these three equations models. Besides we test causality by means of Granger´s test and with time series of each country for 1961-2000. The main conclusion is that there is some degree of interdependence among the three variable: 1) Population moves towards employment. 2) Production increases with population and with social and institutional factors (human capital and other ones). 3) Employment increases with production and population.. The results agree with the Freeman´s conclusions for regional employment and population movements in the USA.

Keywords: Causality tests; Models of Employment and Population; Models of Employment and Production; European Economic; Regional Development (search for similar items in EconPapers)
JEL-codes: C5 C51 J2 O18 O52 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
Date: 2004
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Persistent link: http://EconPapers.repec.org/RePEc:eaa:ecodev:80

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