Structural Unemployment in the United States: The Effects of Interindustry and Interregional Dispersion

Jeffrey Parker

Economic Inquiry, 1992, vol. 30, issue 1, 101-16

Abstract: The effects of sectoral shifts, measured by dispersion in the growth rates of employment or earnings across industries or regions, on unemployment are tested in a specification controlling for the effects of other labor-market variables and shifts in the demographic composition of the labor force. Interindustry and geographical shifts in labor demand have significant unemployment effects, with adult males the group most strongly affected. The estimated equations imply that most of the fluctuation in unemployment over the period 1956-87 was due to microeconomic causes rather than aggregate demand. Copyright 1992 by Oxford University Press.

Date: 1992
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