Determinants of Regional Unemployment; an Analysis of Regional Labor D Demand and Regional Labor Market Disparities in West Germany, 1980

We Estimate Regional Unemployment Functions As Complements to Regional Labor Demand Functions for the Federal Republic of Germany in 1980 Using Flexible Econometric Forms and Accounting for Heteroskedasticity and Spatial Autocorrelation. We Show That the Methods Used Considerably Improve the Statistical Significance As Well As the Plausibility of the Results. We Conclude That a Rise in Labor Productivity Reduces Unemployment and That Employment Stabilizes Regional Labor Stabilizes Regional Labor Markets.