Sectoral Imbalance and Unemployment in the United Kingdom: 1963-84

George Evans

Oxford Economic Papers, 1993, vol. 45, issue 3, 440-56

Abstract: Quarterly measures of U.K. labor market sectoral imbalance are computed using industrial and regional data. Cyclically corrected measures are used to examine the extent to which changes in sectoral imbalance affect the position of the unemployment-vacancy rule curve. The substantial increase in industrial imbalance beginning in 1980 is estimated to have accounted for an increase in the unemployment rate, measured at U = V, of about 2.7 percentage points. Copyright 1993 by Royal Economic Society.

Date: 1993
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