The persistence of local joblessness

Amior, Michael and Manning, Alan ORCID: 0000-0002-7884-3580 (2018) The persistence of local joblessness. American Economic Review, 108 (7). pp. 1942-1970. ISSN 0002-8282

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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

Item Type:	Article
Official URL:	https://www.aeaweb.org/journals/aer
Additional Information:	© 2018 American Economic Association
Divisions:	Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HE Transportation and Communications H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J21 - Labor Force and Employment, Size, and Structure J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
Date Deposited:	26 Jan 2018 15:09
Last Modified:	09 Nov 2024 21:15
URI:	http://eprints.lse.ac.uk/id/eprint/86558

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