The System-Wide Impact on the Recipient Region of a Regional Labour Subsidy

Frank Harrigan, Peter Gregor McGregor () and John Kim Swales ()

Oxford Economic Papers, 1996, vol. 48, issue 1, pages 105-33

Abstract: This paper analyzes the impact of the introduction of a general, automatic labor subsidy in a regional economy, concentrating on employment effects. The authors adopt a computable general equilibrium approach, using a model parameterized on data from a U.K. region, Scotland. Two particular issues are identified which have usually been neglected in previous work in this area: the impact of the fiscal injection associated with the subsidy and the qualitative and quantitative consequences of allowing the nature of the regional labor market to vary. Copyright 1996 by Royal Economic Society.

Date: 1996
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