REGARD

Regional labour market development is a result of the interaction between supply and demand mechanisms in spatial labour markets. From the demand side employment is affected by regional economic and industrial factors, while labour supply is mainly influenced by demographic factors and the rate of labour market participation. The simultaneity in these mechanisms has to be taken into account when analysing the processes of regional labour markets. To this end, Statistics Norway has developed the regional REGARD model. This model derives the regional development in employment and labour force from different macroeconomic scenarios. Furthermore, the model is applied to study the effects from changes in economic policy on employment and population in different regions. The model construction included e.g. empirical analyses of regional producer behaviour in manufacturing industries and the relationship between labour market development and regional migration.

Documentation and applications of REGARD

Stambøl L.S., N.M.Stølen og T.Åvitsland (1998): «Regional analyses of labour markets and demography - a model based Norwegian example». I Papers in Regional Science - The Journal of the RSAI, vol 77, no. 1, 37-62, 1998, Regional Science Association International, Illinois, USA.