首页|Spatial spillover effects in the labour market in a middle-income country

Spatial spillover effects in the labour market in a middle-income country

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Most macroeconomic labour literature on estimating matching functions does not consider spatial spillover effects. However, job search and vacancy-filling processes often involve neighbouring locations, as local workers can search for and fill vacancies in nearby labour markets. We estimate a spatial spillover model using annual data for a middle-income country in Latin America. Our findings show that unemployment has a positive spatial spillover effect because an increase in the labour supply raises the probability of filling a vacancy. In contrast, vacancies have a negative spillover effect because local and neighbouring vacancies compete to be filled by workers in both markets.

Matching functionspatial spilloversspatial econometrics

Leonardo-Fabio Morales、Mauricio Quinones、Eleonora Davalos、Luis-Felipe Gaviria

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Labor Market Analysis Group, Banco de la Republica, Medellin, Colombia

Department of Economics, Pontificia Universidad Javeriana, Cali, Colombia

School of Finance, Economics, and Government, Universidad EAFIT, Medellin, Colombia

2025

Spatial economic analysis

Spatial economic analysis

ISSN:1742-1772
年,卷(期):2025.20(1)
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