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Flexible Employment and Cross-Regional Adjustment

Ioannis Kaplanis () and Vassilis Monastiriotis ()

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: Employment flexibility is commonly associated to greater labour mobility and thus faster cross-regional adjustments. The literature however offers very little hard evidence on this and quite limited theoretical guidance. This paper examines empirically the relationship between employment flexibility and cross-regional adjustment (migration) at the regional and local levels in the UK. Employment flexibility is associated to higher labour mobility (but only at a rather localised scale) and at the same time seems to reduce the responsiveness of migration to unemployment. This suggest that rising flexibility may be linked to higher persistence in spatial disparities, as intra-regional adjustments are strengthened while extraregional adjustments weakened.

Keywords: Employment flexibility; regional migration; labour market adjustment (search for similar items in EconPapers)
JEL-codes: R11 R23 J08 J61 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-eur, nep-geo, nep-lab, nep-mig and nep-ure
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Working Paper: Flexible employment and cross- regional adjustment (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0100

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