Human capital and labour market resilience over time: a regional perspective of the Portuguese case

Marta Simã•es (), João Andrade and Adelaide Duarte ()
Additional contact information
Marta Simã•es: University of Coimbra, Faculty of Economics and a researcher affiliated with CeBER, Portugal
Adelaide Duarte: University of Coimbra, Faculty of Economics and a researcher affiliated with CeBER, Portugal
Authors registered in the RePEc Author Service: Marta C. N. Simões ()

Eastern Journal of European Studies, 2022, vol. 13(1), 26-59

Abstract: This study examines the link between human capital and labour market resilience in the seven Portuguese NUTS-2 regions over the period 1995-2018. We use the Local Projection methodology (LPM) to estimate a SVAR model with three variables (employment, human capital, output) conditioning the response of the labour market to two scenarios depending on whether a shock to GDP occurs during recessions or during expansions, with output gap as the switching variable for the identification of recession and expansion regimes. The comparison of the employment responses to GDP shocks between the two regimes is informative about the degree of resilience of the labour market. We find evidence of: (i) distinct effects in terms of the sign and amplitude of GDP shocks on regional employment according to the level of educational attainment of employees; (ii) labour market resilience but jobless recoveries in several regions; and (iii) different regional reactions of human capital to GDP shocks depending on the regime.

Keywords: employment resilience; GDP shocks; local projections; structural VARs; NUTS-2; Portugal (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ejes.uaic.ro/articles/EJES2022_1301_SIM.pdf (application/pdf)

Related works:
Working Paper: Human capital and labour market resilience over time: a regional perspective of the Portuguese case (2022)
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:jes:journl:y:2022:v:13:p:26-59

DOI: 10.47743/ejes-2022-0102

Access Statistics for this article

More articles in Eastern Journal of European Studies from Centre for European Studies, Alexandru Ioan Cuza University Contact information at EDIRC.
Bibliographic data for series maintained by Alupului Ciprian ().