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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 558488
Title Regional labour force participation across the European Union: a time-space recursive modelling approach with endogenous regressors
Author(s) Halleck Vega, Sol Maria; Elhorst, J.P.
Source Spatial Economic Analysis 12 (2017)2-3. - ISSN 1742-1772 - p. 138 - 160.
Event 14th International Workshop on Spatial Econometrivcs and Statistics, Paris, 2015-05-27/2015-05-28
Publication type Refereed Article in a scientific journal
Publication year 2017
Keyword(s) labour force participation - European Union regions - dynamic spatial panels - endogenous regressors - panel-data models - spatial econometrics - market participation - unemployment - women - rates - disturbances - restrictions - estimators - dependence
Abstract Regional labour force participation across the European Union: a time–space recursive modelling approach with endogenous regressors. Spatial Economic Analysis. Although there is an abundant regional labour market literature taking a spatial perspective, only a few studies have explored extending the analysis of labour force participation with spatial effects. This paper revisits this important issue, proposing a time–space recursive modelling approach that builds on and appraises Fogli and Veldkamp’s methodology from 2011 and finding for the United States that participation rates vary with past values in nearby regions. Major shortcomings in their study are corrected for, including stationarity and the control for endogenous regressors other than the time and space–time-lagged dependent variable using system generalized method of moments (GMM). The paper also highlights interaction effects among explanatory variables for the first time in this context. Using a panel of 108 regions across the European Union over 1986–2010, the results for total, male and female participation rates throw a new light on the socio-economic relevance of different determinants. Importantly, characteristics in neighbouring regions play a significant role, and neglecting endogeneity is found to have serious consequences, underlining increased attention on the specification and estimation of spatial econometric models with endogenous regressors.
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