Persistent Regional Unemployment Differentials Revisited

David Gray ()

Regional Studies, 2004, vol. 38, issue 2, 167-176

Abstract: Gray D. (2004) Persistent regional unemployment differentials revisited, Reg. Studies 38, 167-176. Based on bivariate and multivariate cointegration, three inferences concerning the nature of the British regional unemployment rates are drawn. First, regional unemployment rates are characterized by long-run, persistent relationships. The differentials are maintained by equilibrating systemic forces that induce co-movements of rates in the long-run, implying that decreasing the national rate of unemployment will reduce regional rates, but not eliminate differentials. Second, multivariate cointegration provides a richer picture of unemployment co-movements compared with bivariate analysis. Third, East Anglia does not revert to an equilibrium relationship with the other regions, suggesting that it is not constrained to follow the common trends driving the British regional system in the long-run.

Keywords: Regional unemployment rate differentials; Bivariate cointegration; Multivariate cointegration; Unit root; Ecarts du taux de chomage regional; Co-integration a deux variables; Co-integration a plusieurs variables; Element racine; Regionale Unterschiede der Arbeitslosenrate; Zweifach variabler Zusammenschluss; Mehrfach variabler Zusammenschlusseinheiten; Wurzeleinheit; Diferenciales en el nivel de desempleo regional; Cointegracion bivariante; Cointegracion multivariante; Unidad raiz (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0034340042000190145 (text/html)
Access to full text is restricted to subscribers.

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:taf:regstd:v:38:y:2004:i:2:p:167-176

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CRES20

DOI: 10.1080/0034340042000190145

Access Statistics for this article

Regional Studies is currently edited by Ivan Turok

More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().