Korobilis, Dimitris and Gilmartin, Michelle (2010): On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK.
Download (472kB) | Preview
This paper considers the determinants of regional disparities in unemployment rates for the UK regions at NUTS-II level. We use a mixture panel data model to describe unemployment differentials between heterogeneous groups of regions. The results indicate the existence of two clusters of regions in the UK economy, characterised by high and low unemployment rates respectively. A major source of heterogeneity seems to be caused by the varying (between the two clusters) effect of the share of employment in the services sector, and we trace its origin to the fact that the "high unemployment" cluster is characterised by a higher degree of urbanization.
|Item Type:||MPRA Paper|
|Original Title:||On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK|
|Keywords:||distribution dynamics; regional labour markets; unemployment differentials|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics
|Depositing User:||Dimitris Korobilis|
|Date Deposited:||03. Feb 2011 00:25|
|Last Modified:||19. Jul 2015 18:15|
Baltagi B. H. (2005). Econometric analysis of panel data. 3rd edition, John Wiley and Sons, Chichester.
Basturk N., Paap R. and van Dijk D. J. C. (2008). Structural differences in economic growth, Tinbergen Institute Discussion Paper, TI 2008-085/4, Erasmus University Rotterdam.
Baumont C., Ertur C. and Le Gallo J. (2003). Spatial Convergence Clubs and the European Regional Growth Process, 1980-1995. In: Fingleton B. (Ed.), European Regional Growth, Springer, Berlin, Heidelberg, New York, pp. 131-158
Bean C. R. (1994). European unemployment: A survey. Journal of Economic Literature 32, 573-619.
Bozdogan H. (1994). Mixture-model cluster analysis using model selection criteria and a new information measure of complexity. In: Bozdogan, H. (Ed.), Proceedings of the First US/Japan Conference on the Frontiers of Statistical Modeling: An Informational Approach, vol. 2. Kluwer, Boston, pp. 69-113.
Canova F. (2004). Testing for convergence clubs in income per capita: A predictive density approach. International Economic Review 45, 49-77.
Cracolicci M. F., Cuffaro M. and Nijkamp P. (2007). Geographical Distribution of Unemployment: An analysis of Provincial Differences in Italy. Growth and Change 38, 649-670.
Crone T. M. (2005). An alternative definition of economic regions in the United States based on similarities in State business cycles. The Review of Economics and Statistics 87, 617-626.
Elhorst J. P. (2003). The mystery of regional unemployment differentials: A survey of theoretical and empirical explanations. Journal of Economic Surveys 17, 709-748.
Fischer M. and Stirböck C. (2004). Regional Income Convergence in the Enlarged Europe, 1995-2000: A Spatial Econometric Perspective. Centre for European Economic Research, Discussion Paper No. 04-42.
Früwirth-Schnatter S. and Kaufmann S. (2008). Model-based clustering of multiple time series. Journal of Business & Economic Statistics 26, 78-89.
Lattin, J., Carroll, J.D. and Green, P.E. (2003). Analyzing Multivariate Data. Thomson Learning, Pacific Grove CA.
Lopez-Bazo E., del Barro E. T. and Artis M. (2005). Geographical distribution of unemployment in Spain. Regional Studies 39, 305-318.
McLachlan G. J. and Krishnan T. (1997). The EM Algorithm and Extensions. John Wiley & Sons, New York.
Overman H. G. and Puga D. (2002). Unemployment Clusters Across Europe's Regions and Countries. Economic Policy 34, 115-147.
Paap R., Franses P. H. and van Dijk D. (2005). Does Africa grow slower than Asia, Latin America and the Middle East? Evidence from a new data-based classification method. Journal of Development Economics 77, 553-570.
Partridge M. D. and Rickman D. S. (1997). The Dispersion of US State Unemployment Rates: The Role of Market and Non-Market Equilibrium Factors. Regional Studies 31, 503-606.
Quah D. T. (1996). Regional Convergence Clusters across Europe. European Economic Review 40, 951-958.
Taylor J. and Bradley S. (1997). Unemployment in Europe: A Comparative Analysis of Regional Disparities in Germany, Italy and the UK. Kyklos 50, 221-245.
Tsionas E.G. (2000). Regional Growth and Convergence: Evidence from the United States. Regional Studies 34, 231--38