Frictional and Long-Term Unemployment in a Spatially Separated Economy

Ian King

Working Paper from Economics Department, Queen's University

Abstract: This paper separates the "natural" rate of unemployment into two components: frictional and long-term unemployment. A simple labour market model with spatial separation and Markov production shocks is presented. The existence of a stationary equilibrium is proved, and its properties are characterized. In equilibrium, high productivity regions experience frictional unemployment but no long-term unemployment. The converse holds for low productivity regions. The amount of unemployment in each region is determined by recent productive history. The model also describes the dynamics of population density in each location.

Pages: 35 pages
Date: 1988
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:713

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().