The regional distribution of unemployment. What do micro-data tell us?

Regional disparities in unemployment rates are large and persistent. The literature provides evidence of their magnitude and evolution, as well as evidence of the role of certain economic, demographic and environmental factors in explaining the gap between regions of low and high unemployment. Most of these studies, however, adopt an aggregate approach and so do not account for the individual characteristics of the unemployed and employed in each region. This paper, by drawing on micro-data from the Spanish wave of the Labour Force Survey, seeks to remedy this shortcoming by analysing regional differentials in unemployment rates. An appropriate decomposition of the regional gap in the average probability of being unemployed enables us to distinguish between the contribution of differences in the regional distribution of individual characteristics from that attributable to a different impact of these characteristics on the probability of unemployment. Our results suggest that the well-documented disparities in regional unemployment are not just the result of regional heterogeneity in the distribution of individual characteristics. Non-negligible differences in the probability of unemployment remain after controlling for this type of heterogeneity, as a result of differences across regions in the impact of the observed characteristics. Among the factors considered in our analysis, regional differences in the endowment and impact of an individual’s education are shown to play a major role.

Regional Science trends through the analysis of the main facts of the 51st ERSA Conference

The 51st ERSA Conference held in Barcelona in 2011 was one of the largest ever. By examining the characteristics of the conference, this paper identifies the main trends in Regional Science and draws on a broad array of sources of information: the delegates" demographic details, the conference program itself, a satisfaction survey conducted among delegates, a quality survey addressed to those chairing the sessions and, finally, a bibliometric database including each author signing a paper presented at the conference. We finally run a regression analysis from which we show that for ERSA delegates what matters most is quality, and this must be the direction that future conferences should move toward. Ultimately, ERSA conferences are comprehensive, all-embracing occasions, representing an ideal opportunity for regional scientists to present their work to each other and to network.

Human Capital Composition and Economic Growth at a Regional Level

With this paper we build a two-region model where both innovation and imitation are performed. In particular imitation takes the form of technological spillovers that lagging regions may exploit given certain human capital conditions. We show how the high skill content of each region’s workforce (rather than the average human capital stock) is crucial to determine convergence towards the income level of the leader region and to exploit the technological spillovers coming from the frontier. The same applies to bureaucratic/institutional quality which are conductive to higher growth in the long run. We test successfully our theoretical result over Spanish regions for the period between 1960 and 1997. We exploit system GMM estimators which allow us to correctly deal with endogeneity problems and small sample bias.

Regional heterogeneity in wage distributions. Evidence from Spain.

Regional differences in real wages have been shown to be both large and persistent in the U.S. and the U.K., as well as in the economies of other countries. Empirical evidence suggests that wage differentials adjusted for the cost of living cannot only be explained by the unequal spatial distribution of characteristics determining earnings. Rather, average wage gap decomposition reveals the important contribution made by regional heterogeneity in the price assigned to these characteristics. This paper proposes a method for assessing regional disparities in the entire wage distribution and for decomposing the effect of differences across regions in the endowments and prices of the characteristics. The hypothesis forwarded is that the results from previous studies obtained by comparing average regional wages may be partial and nonrobust. Empirical evidence from a matched employer-employee dataset for Spain confirms marked differences in wage distributions between regions, which do not result from worker and firm characteristics but from the increasing role of regional differences in the return to human capital.

Regional economic growth and human capital: the role of overeducation

The paper analyses the link between human capital and regional economic growth in the European Union. Using different indicators of human capital calculated from census microdata, we conclude that the recent economic performance of European regions is associated to an increase in overeducation. In fact, measures of educational mismatch seem to have a stronger connection to regional economic performance than other traditional measures of human capital stocks.

Human Capital Spillovers Productivity and Regional Convergence in Spain

This paper analyses the differential impact of human capital, in terms of different levels of schooling, on regional productivity and convergence. The potential existence of geographical spillovers of human capital is also considered by applying spatial panel data techniques. The empirical analysis of Spanish provinces between 1980 and 2007 confirms the positive impact of human capital on regional productivity and convergence, but reveals no evidence of any positive geographical spillovers of human capital. In fact, in some specifications the spatial lag presented by tertiary studies has a negative effect on the variables under consideration.

Human Capital and Regional Wage Gaps

This paper uses micro-level data to analyse the effect of human capital on regional wage differentials. The results for the set of Spanish regions confirm that they differ in the endowment of human capital, but also that the return that individuals obtain from it varies sharply across regions. Regional heterogeneity in returns is especially intense in the case of education, particularly when considering its effect on the employability of individuals. These differences in endowment and, especially, in returns to human capital, account for a significant proportion of regional wage gaps.

Cross-national neighbouring effects on European regional specialization

In undertaking an analysis of neighbouring effects on European regional patterns of specialization, this paper makes two main contributions to the literature. First, we use a spatial weight matrix that takes into consideration membership of an EU cross-border regional association. We then compare our results with those obtained using a contiguity matrix and constitute an upper bound for our parameter of interest. In a further stage, we divide the CBR associations on the basis of their longstanding and the intensity of their cooperation to determine whether the association type has a significant impact. Second, we examine the sensitivity of our results to the use of alternative relative specialization indices.

The scrutiny of the principle of subsidiarity by autonomous regional parliaments with particular reference to the participation of the Parliament of Catalonia in the early warning system

The purpose of this article is to offer a practical approach to the new European dimension for regional parliaments signified by the entry into force of the Treaty of Lisbon. The parliamentary scrutiny of subsidiarity by way of the early warning system has assigned a new mission to legislative assemblies with the aim of reinforcing the intervention of regions in the drafting of policies by Union institutions. In the Spanish case, the institutionalisation of this mechanism came about with Act nº 24/2009, which attributes to the Joint Committee for the European Union, in the name of the Cortes Generales [the Spanish Parliament], the function of receiving the proposals for legislative acts by the EU and transferring them to the regional parliaments in order for the latter to issue, in a brief period of four weeks, a report on compliance with the principle of subsidiarity. The majority of regional parliaments have also carried out normative reforms to regulate the procedure of participation in the early warning system.

Regional variability in the impact of human capital on regional growth

The first objective of this study is to furnish new evidence concerning the aggregate profitability of the accumulation of human capital. In addition to the traditional measure of the return to human capital, combining the information on its shadow price with the social cost of providing education allows us to confirm the profitability of human capital investments as a tool for promoting economic growth. The possibility of obtaining estimations of these effects for each Spanish region enables us to empirically evaluate the amount of heterogeneity across economies in the effects of human capital. As a second objective, we provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.

Regional returns to physical capital: are they conditioned by educational attainment?

This paper provides novel empirical evidence of the indirect effect of educational attainment on regional economic growth, through its influence on the profitability of investment in physical capital. We test the hypothesis that the regional heterogeneity of the return to physical capital can be directly related to the existing heterogeneity in the educational attainment of workers. The results for the Spanish case support our hypothesis that the higher the educational attainment of workers the greater the returns on investment in physical capital. In fact, this effect seems to be sufficiently strong to have counterbalanced the traditional mechanism of decreasing returns to capital accumulation.

La distribución regional de la temporalidad en españa. Análisis de sus determinantes

Este trabajo aporta evidencia empírica acerca de los factores determinantes de las diferencias en la probabilidad de acceder a un contrato indefinido entre las distintas regiones españolas. Para ello, y de forma novedosa en este contexto, se aplica una extensión de la metodología tradicional de Oaxaca-Blinder al caso de modelos no lineales. Los resultados apuntan a la coexistencia de distintas “culturas de la temporalidad” en España, al existir discrepancias regionales significativas en el empleo del trabajo temporal como medida de flexibilización laboral. Estas diferencias tienen incluso más capacidad explicativa que las discrepancias en las características de la mano de obra y de las empresas instaladas en cada región. Estos resultados cuestionan las medidas adoptadas para combatir el problema de la precariedad laboral en España, al no haber considerado las especificidades regionales.

A state-space approach for measuring regional manufacturing production indices

In this paper we propose a latent variable model, in the spirit of Israilevich and Kuttner (1993), to measure regional manufacturing production. To test the validity of the proposed methodology, we have applied it for those Spanish regions that have a direct quantitative index. The results demonstrate the accuracy of the methodology proposed and show that it can overcome some of the difficulties of the indirect method applied by the INE, the Spanish National Institute of Statistics.

La investigación regional en España: un análisis bibliométrico

Este trabajo analiza cual ha sido la evolución de la investigación en ciencia regional y urbana en España en el período 1991-2000 situándola en el contexto internacional. Para ello, se elaboran rankings de países, autores e instituciones en función de las publicaciones realizadas en una muestra de nueve revistas internacionales ampliamente reconocidas dentro de este campo. Los resultados muestran que la mejora en la posición relativa a nivel internacional encontrada por otros autores para el conjunto de la investigación española en economía también se produce en el contexto de la investigación económica regional y urbana De hecho, hay un claro aumento de la presencia a nivel internacional de los autores e instituciones españolas motivado en buena medida por un incremento de las publicaciones de autores con tradición en la investigación en ciencia regional y urbana pero también por la irrupción con fuerza de 'nuevos' autores.

La investigación regional en España. Rankings de países, instituciones y autores en ciencia regional y urbana para el período 1991-2000

Este trabajo analiza cual ha sido la evolución de la investigación en ciencia regional y urbana en España en el período 1991-2000 situándola en el contexto internacional. Para ello, se elaboran rankings de países, autores e instituciones en función de las publicaciones realizadas en una muestra de nueve revistas internacionales ampliamente reconocidas dentro de este campo. Los resultados muestran que la mejora en la posición relativa a nivel internacional encontrada por otros autores para el conjunto de la investigación española en economía también se produce en el contexto de la investigación económica regional y urbana De hecho, hay un claro aumento de la presencia a nivel internacional de los autores e instituciones españolas motivado en buena medida por un incremento de las publicaciones de autores con tradición en la investigación en ciencia regional y urbana pero también por la irrupción con fuerza de 'nuevos' autores.