On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK
Dimitris Korobilis and
Working Paper series from Rimini Centre for Economic Analysis
This paper considers the determinants of regional disparities in unemployment rates for the UK regions at NUTS-II level. We use a mixture panel data model to describe unemployment differentials between heterogeneous groups of regions. The results indicate the existence of two clusters of regions in the UK economy, characterised by high and low unemployment rates respectively. A major source of heterogeneity seems to be caused by the varying (between the two clusters) effect of the share of employment in the services sector, and we trace its origin to the fact that the "high unemployment" cluster is characterised by a higher degree of urbanization.
Keywords: distribution dynamics; regional labour markets; unemployment differentials (search for similar items in EconPapers)
JEL-codes: C23 J08 J64 R12 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-geo, nep-lab and nep-ure
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Journal Article: On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK (2012)
Working Paper: On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:13_11
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