OKUN’S LAW IN THE FRENCH REGIONS: A CROSS-REGIONAL COMPARISON

Marie-Estelle Binet () and François Facchini
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François Facchini: Centre d'Economie de la Sorbonne, University of Paris 1

Economics Working Paper Archive (University of Rennes & University of Caen) from Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS

Abstract: This article tackles one central issue in the regional science literature: the persistence of regional disparities in unemployment within national economies. Our approach is original as Okun’s coefficients are estimated for each of the 22 administrative French regions over the period 1990–2008, taking into account cross-regional disparities in a panel data specification. Estimates show that the coefficients exhibit regional differences. Indeed, Okun’s law is confirmed in fourteen regions, although it does not hold in the other eight regions. Finally, region-specific factors that explain the results that are not significant are identified, and policies to reduce unemployment in French regions are examined.

Keywords: Okun’s law; regional labour markets; panel data (search for similar items in EconPapers)
JEL-codes: C23 O18 R23 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: Okun's law in the french regions: a cross-regional comparison (2013)
Working Paper: Okun's Law in the French Regions: A Cross-Regional Comparison (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tut:cremwp:201222

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