A MULTIREGIONAL LABOUR SUPPLY MODEL FOR AUSTRIA: THE EFFECTS OF DIFFERENT REGIONALISATIONS IN MULTIREGIONAL LABOUR MARKET MODELLING

The design of a spatial Framework in multi- and interregional modelling is a crucial element of the research process. In this paper an attempt is made to present some empirical evidence with respect to two hypotheses, the scale hyothesis and the aggregation hypothesis. This will be achieved by estimating the parameters and testing the performance of a multiregional labour supply model for Austria. Five regionalisation approaches are specified for delineating (functional) labour market regions. The paper shows that it is by no means admissible to ignore possible effects of the spatial representation choice. The fundamental question of which regionalisation should be chosen should be decided on the basis of relevant evaluation criteria.