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•  Regional differences within countries. •  Persistent differences of unemployment rates across European regions. •  OECD Regions at a Glance 2013, 2009 •  Low inter-­‐regional migra8on rates. In par8cular, across Spanish regions: •  2003 -­‐Net flows: 0.6 ; 2012 – Net flows: 0.85 •  In Spain, persistent regional unemployment rates dispari8es have risen during the last Great Recession (Sala and Trivin (2013)) 1 hXp://dx.doi.org/10.1787/888932914406 hXp://dx.doi.org/10.1787/524060265637 Regional Unemployment Dispari8es in Spain an important concern nowadays. Related Literature •  Theore8cal literature on the interac8ons between migra8on and unemployment: •  Harris and Todaro (1070), Blanchard and Katz (1992) . •  Matching models and migra8on/mobility-­‐unemployment •  Chéron (1999), Ortega (2000), Kline and Moreb (2013), Steinbaum (2013), Lutgen and Van der Linden (2013), Beaudry et al. (2014). Endogenous wages determined by Nash bargaining process Jonathan CRÉCHET Université de Montréal Endogenous Labor Force Calibra7on Model Firms: employment as produc8ve factor. Regional specific changes. Trade in the labour market has matching imperfec8ons between vacant jobs and workers Where is a scale factor for region j. Dynamic regional equilibrium model where unemployed workers can migrate Steady State Sta7s7cs Raquel FONSECA Université de Québec à Montréal
and CIRANO
Counterfactual Simula7ons Factors to explain unemployment dispari7es •  Factors that contribute to reduce these differences •  Separa8ons rates •  U8li8es of staying in a region •  Efficiency of matching www.sciencespo.fr/liepp