 Regional Differences in the Severity of Recessions in the UKNo 1009, Department of Economics - Working Papers Series from The University of Melbourne Abstract: This paper aims to provide a fresh approach to understanding regional unemployment dynamics and differences. Specifically, we develop a framework to explain differences between regions in the severity (measured in terms of how far unemployment rises) of recessions. The main contribution of this paper is draw attention to the role of the elasticity of the outflow rate with respect to unemployment in determining the severity of recessions. The key parameter of the model - the elasticity of the outflow rate with respect to unemployment - is estimated using regional data for the United Kingdom over the period 1989:1 - 2003:4. This elasticity appears to be higher in the north than the south implying that, for the same percentage increase in inflow, the level (and rate) of unemployment will rise further in northern regions than in southern regions. It follows that, if there has indeed been any reversal of the north-south divide in the United Kingdom as some have claimed, it must have its origins on the inflow, not the outflow, side of the labour market. Pages: 27 pages Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:1009 Access Statistics for this paper More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.