The persistence of local joblessness

Michael Amior and Alan Manning

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Differences in employment-population ratios across US commut- ing zones have persisted for many decades. We claim these dispar- ities represent real gaps in economic opportunity for individuals of fxed characteristics. These gaps persist despite a strong migratory response, and we attribute this to high persistence in labor demand shocks. These trends generate a \race" between local employment and population: population always lags behind employment, yield- ing persistent deviations in employment rates. Methodologically, we argue the employment rate can serve as a sufficient statistic for local well-being; and we model population and employment dy- namics using an error correction mechanism, which explicitly al- lows for disequilibrium

JEL-codes: J21 J23 J61 J64 R23 (search for similar items in EconPapers)
Date: 2018-07-01
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
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Citations: View citations in EconPapers (46)

Published in American Economic Review, 1, July, 2018, 108(7), pp. 1942-1970. ISSN: 0002-8282

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http://eprints.lse.ac.uk/86558/ Open access version. (application/pdf)

Related works:
Journal Article: The Persistence of Local Joblessness (2018)
Working Paper: The Persistence of Local Joblessness (2015)
Working Paper: The persistence of local joblessness (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:86558

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