Identifying Regional Labor Demand Shocks Using Sign Restrictions

Falko Juessen and Ludger Linnemann ()
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Ludger Linnemann: TU Dortmund

No 6767, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We propose using sign restrictions to identify regional labor demand shocks in a panel VAR of US federal states. Observed migration responds significantly, but less persistently than the residual-based migration measure constructed by Blanchard and Katz (1992).

Keywords: regional labor markets; migration; panel VAR; sign restrictions (search for similar items in EconPapers)
JEL-codes: C32 C33 E24 R11 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2012-07
New Economics Papers: this item is included in nep-geo and nep-ure
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