Sources of Prevailing Differences in Unemployment Rates For Selected Regional Pairs

Lou Pantuosco and Darrell Parker
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Lou Pantuosco: Winthrop University
Darrell Parker: Winthrop University

The Review of Regional Studies, 1998, vol. 28, issue 2, 35-46

Abstract: This paper provides a focused examination of state fiscal policies on labor supply. To compare unemployment rates, four U.S. states and one U.S. region were matched with neighboring twins that exhibit similar labor demand relationships. In each case, a difference in unemployment rates has persisted since the early 1970s. The impact of state fiscal policies on unemployment insurance and public assistance on the differences in unemployment rates is estimated. Both fiscal packages contribute to the unemployment difference for some states.

Date: 1998
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