Open AccessLabour Market Dynamics in Greek Regions: a Bayesian Markov Chain Approach Using Proportions Data
Author(s) -
George A. Christodoulakis,
Emmanuel Mamatzakis
Publication year - 2010
Publication title -
review of economic analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.101
H-Index - 1
ISSN - 1973-3909
DOI - 10.15353/rea.v2i1.1490
Subject(s) - unemployment , markov chain monte carlo , bayesian probability , economics , markov chain , econometrics , convergence (economics) , distribution (mathematics) , statistics , mathematics , macroeconomics , mathematical analysis
This paper focuses on Greek labour market dynamics at a regional base, which comprises of 16 provinces, as defined by NUTS levels 1 and 2 (Eurostat, 2008), using Markov Chains for proportions data for the first time in the literature. We apply a Bayesian approach, which employs a Monte Carlo Integration procedure that uncovers the entire empirical posterior distribution of transition probabilities from full employment to part employment, unemployment and economically unregistered unemployment and vice a versa. Our results show that there are disparities in the transition probabilities across regions, implying that the convergence of the Greek labour market at a regional base is far from being considered as completed. However, some common patterns are observed as regions in the south of the country exhibit similar transition probabilities between different states of the labour market.