Unbalanced Growth in the Labourscape: explaining regional employment divergence

Robert Sobyra, Thomas Sigler and Elin Charles-Edwards

No 2ywd8, OSF Preprints from Center for Open Science

Abstract: This paper investigates the role of human capital in explaining divergent employment growth within advanced economies. It adds a spatial dimension to William J. Baumol’s theory of ‘unbalanced growth’ by linking it with the concept of ‘job polarization’. We develop a theory of ‘geographical unbalanced growth’ that explains divergent employment trajectories in terms of skill restructuring. The theory is operationalized via a novel shift–share extension, which is applied to Australian data. We find evidence of ongoing regional divergence and for our proposed mechanism. The findings reinforce the importance of active policies to attract high-skilled jobs to non-metropolitan regions.

Date: 2021-09-15
New Economics Papers: this item is included in nep-geo, nep-isf and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:2ywd8

DOI: 10.31219/osf.io/2ywd8

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