A Choice-Theoretical Labour-Market Model: Empirical Tests at the Mesolevel

Abstract

This paper contains an analysis of a multiregional labour-supply model for Austria. In the approach suggested here attempts are made to combine the advantages of random-utility-based discrete choice theory and partial reduced-form estimation. Two recursive submodels, the labour-force participation submodel, and the commuting and employment submodel, are developed. Three different types of model specifications at the mesolevel are used to analyse the consequences of choosing a spatial framework of overlapping regional labour markets upon the model parameters, to investigate the usefulness of the model approach in relation to different regionalisation variants, and to carry out a sensitivity analysis with respect to the effects of the model parameters used to delineate the labour-market regions.