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Commuting, Migration and Local Joblessness

Michael Amior and Alan Manning

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Britain suffers from persistent spatial disparities in employment rates. This paper develops an integrated framework for analyzing two forces expected to equalize economic opportunity across areas: commuting and migration. Our framework is applicable to any level of spatial aggregation, and we use it to assess their contribution to labor market adjustment across British wards (or neighborhoods). Commuting offers only limited insurance against local shocks, because commutes are typically short and shocks are heavily correlated spatially. Analogously, migration fails to fully equalize opportunity because of strong temporal correlation in local demand shocks.

Keywords: spatial inequality; commuting; migration (search for similar items in EconPapers)
JEL-codes: J21 J61 J64 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-lab, nep-ltv, nep-mig and nep-ure
Date: 2019-06
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