the leading region raise unemployment in the rest of the economy and leave regional wages unchanged, causing an increase … in aggregate unemployment. This model has some success in explaining the evolution of regional unemployment rates in … Italy during the period 1977-1998. Based on SHIW micro data on earnings and ISTAT data on unemployment rates we find strong …

This paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … reaction theory of unemployment, which focuses on (a) the interaction among labor market adjustment processes, (b) the … growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment …