Abstract
Problems associated with employment have become a major issue in regional economics, especially in those countries, such as Spain, where unemployment represents a serious threat to regional stability. In this context, the purpose of our paper is twofold: first, to develop a prediction instrument for regional employment, one which should be flexible and efficient; secondly, to use this instrument in order to make a short term forecast of sectoral regional employment (and the labour force) of a characteristic region of Spain, namely Aragon.
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