Regional Labor Dynamics and their Relevance in the National Aggregate: A Time Series Clustering Application for Chile

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Chavez Bustamante, Felipe O. G.
Mondaca Marino, Cristian
Rojas Mora, Julio
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ESTUDIOS DE ECONOMIA APLICADA,Vol.36,961-978,2018
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Abstract
The objective of this work is to analyze the employment behavior in the labor market in Chile at the regional level, determining the differences and similarities between regions, and of the regions with the aggregate employment at the national level. For this work, we studied the monthly regional employment rates during the 1986-2010 period for Chile by applying time series clustering methods to identify regions with similar dynamics. Afterward, we use that information to build a model that explains the contributions from the regional markets to the national aggregate. Results show the existence of regimes on the local labor markets and the relevance of the Metropolitan Region on the country-level behavior.
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