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Benchmarking Regions: Estimating the Counterfactual Distribution of Labor Market Outcomes

Title: Benchmarking Regions: Estimating the Counterfactual Distribution of Labor Market Outcomes
Authors: Bernd Fitzenberger; Marina Furdas; Jel-classification C
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: http://portal.uni-freiburg.de/empiwifo/discussion-papers/furdas/benchmarking_regions_1210.pdf.
Publication Year: 2012
Collection: CiteSeerX
Subject Terms: Contents
Description: This paper develops and implements a new benchmarking approach for labor market regions. Based on regional panel data, we use nonparametric matching techniques to account for observed labor market characteristics and for spatial proximity. As the benchmark, we estimate the counterfactual distribution of labor market outcomes for a region based on outcomes of similar regions. This allows to measure both the rank (relative performance) and the absolute performance based on the actual outcome for a region. Our outcome variable of interest is the hiring rate among the unemployed. We implement different similarity measures to account for differences in labor market conditions and spatial proximity, and we choose the tuning parameters in our matching approach based on a two-dimensional cross-validation procedure. The results show that both observed labor market characteristics and spatial proximity are important to successfully match regions. Specifically, the modified Zhao (2004) distance measure and geographic distance in logs work best in our applications. Our estimated performance measures remain quite stable over time.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.648.3592
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.648.3592; http://portal.uni-freiburg.de/empiwifo/discussion-papers/furdas/benchmarking_regions_1210.pdf
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.5A85F07F
Database: BASE