Thresholds for employment and unemployment: A spatial analysis of German regional labour markets, 1992–2000*

Reinhold Kosfeld () and Christian Dreger

Papers in Regional Science, 2006, vol. 85, issue 4, 523-542

Abstract: Abstract. This paper applies Verdoorn's and Okun's law to derive efficient estimates of the employment and unemployment threshold in the Unified Germany. The analysis is built on a disaggregated dataset of regional labour markets, where spatial dependencies are taken into account. Especially, a spatial SUR model is proposed utilising the eigenfunction decomposition approach suggested by Griffith (1996, 2000). The thresholds turn out to be unstable over time. However, minimum output growth sufficient for a rise in employment is below the level needed for a drop in the unemployment rate. If spatial effects are ignored, the thresholds seem to be markedly overrated.

Date: 2006
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Citations: View citations in EconPapers (23)

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https://doi.org/10.1111/j.1435-5957.2006.00096.x

Related works:
Working Paper: Thresholds for Employment and Unemployment - a Spatial Analysis of German Regional Labour Markets 1992-2000 (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:85:y:2006:i:4:p:523-542

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