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Matching across space: evidence from Finland

2005

This paper studies spatial aspects in local labour markets in Finland from the perspective of a matching approach. The monthly data comprise 173 Local Labour Office are as over a 12-year period between January 1991 and August 2002. The basic matching function is extended to account for spatial spill-overs between the local labour markets. The role of population density in the matching process is also examined. According to results, the Finnish local labour markets suffer from a strong congestion effect among job seekers, and spatial spill-overs even strengthen the congestion. An open vacancy is filled much easier than a job seeker is employed. The results show that the matching efficiency i…

spatialspilloverMatching (statistics)Labour economicsSeekersmatchingGeography Planning and DevelopmentEconomicsddc:330returns-to-scaleDemographic economicsSpace (commercial competition)populationdensityDemography
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