In this paper we apply a stochastic frontier approach to examine how matching inefficiencies and regional disparities in structural factors contribute to regional and aggregate unemployment. Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local...

In this paper we apply a stochastic frontier approach to examine how matching efficiency and regional differences in structural factors contribute to regional and aggregate unemployment. Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local...

The study examines how the job competition among the highly educated affects their wages in regional labour markets. We estimate individual-level wage curves separately for graduates and post-graduates and divide the job competition in unemployed and employed job search by level of education....

This paper analyses the impact that local labour market conditions have on entry wages of highly educated workers in Great Britain and Finland. In both countries, workers entering the labour market in regions with (or periods of) tighter job competition obtain lower wages. Competition from...

This paper takes a matching approach to local labour markets in Finland. The monthly data comprise 120 Local Labour Office areas over a 12 year period between January 1991 and August 2002. The basic matching function is extended to account for spatial spillovers across borders. The role of...

The study shows that a stochastic frontier approach applied to regional level data offers a convenient and interesting method to examine how regional differences in matching efficiency and structural factors contribute to aggregate unemployment. The study finds notable and time-wise stable...

This study examines the matching aspects of local labour markets focusing on the status of job seekers in the matching process, on spatial autocorrelation in labour market conditions of local labour markets, and on differences in matching processes between areas with permanently deviating...