The paper uses the theoretical framework of the Spatial Economics to analyze (1) the regional unemployment disparities … opportunities therefore reduce local unemployment. We estimate a spatial panel model in order to explain the unemployment …

unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced … effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit … the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long …