• Journal of the Economic Geographical Society of Korea
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• v.12 no.3
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• pp.248-259
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• 2009

This paper analyzes the interactions among regional labor markets in Korea. Specifically, we focus on the job market externality between neighboring regions. To estimate the job matching functions, we construct panel data on unemployment, vacancies and hires for the period of January 2004 through December 2007 for 15 cities and provinces in Korea. We employ various spatial econometric techniques to avoid the problem of spatial autocorrelation which frequently arises when dealing with regional data. Main findings are as follows. First, estimation results are consistent with conventional job matching theory. That is, as the number of job searchers and vacancies increase, the number of hires also rises. And it is relatively easier for firms to hire workers than for job seekers to find jobs. Second, it is found that, other things equal, the possibility of job matching is higher in large metropolitan areas than rural areas. Finally, the findings show that the number of job searchers in neighboring areas is negatively correlated with the number of hires in the area. Likewise, the number of vacancies in neighboring areas is positively correlated with number of hires in the area. These provide clear evidence on the existence of regional spillover effects.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.4
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• pp.752-765
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• 2012

We analyze the relation empirically between regional labor market characteristics and job matching efficiency with the adaption of stochastic frontier production function. Our empirical results suggest that, as both the ratio of 50 years-old-job seekers and the level of spatial density increase, job matching efficiencies also rise. In contrast, an increase in the ratio of firms which offer permanent contracts lowers job matching efficiencies. And the job matching efficiency is relatively higher in metropolitan areas. Finally, We find a negative relation between total industrial production and job matching efficiency, which implies that job seekers tend to accept uncongenial jobs in the recessions.