Regional labor markets in Finland: Adjustment to total versus region-specific shocks

Sari Pekkala Kerr and Aki Kangasharju ()

Papers in Regional Science, 2002, vol. 81, issue 3, 329-342

Abstract: This article analyses regional labor market adjustment in the Finnish provinces during 1976-2000. We investigate the inter-relations of employment, unemployment, labor force participation, and migration to see how a change in region-specific and total labor demand is adjusted. The analysis reveals that region-specific labor demand shocks adjust mainly via participation, whereas total shocks are adjusted by unemployment. The region-specific component of labor demand shock has shorter-lived effects on unemployment and participation, but its effect on employment is permanent. Conversely, total shocks leave no permanent effect. Migration is more important in the region-specific case where, after a few years, it acquires a large role in the adjustment process.

Keywords: Labor market; employment; unemployment; migration; shock adjustment (search for similar items in EconPapers)
JEL-codes: J6 R23 (search for similar items in EconPapers)
Date: 2002-07-01
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.de/link/service/journals/10110/papers/2081003/20810329.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:presci:v:81:y:2002:i:3:p:329-342

Ordering information: This journal article can be ordered from
http://www.springer. ... cience/journal/10110

Access Statistics for this article

Papers in Regional Science is currently edited by Raymond J.G.M. Florax

More articles in Papers in Regional Science from Springer, Regional Science Association International Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().