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Unemployment Disparities (unemployment + disparity)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	50%

Selected Abstracts

A Micro-Simulation Approach to Modelling Spatial Unemployment Disparities

GROWTH AND CHANGE, Issue 3 2010
DAVID PHILIP MCARTHUR
ABSTRACT This paper aims to construct a comprehensive model capable of simulating spatial unemployment disparities. The key feature of the model is that it simultaneously deals with commuting and migration. Much of the existing literature simply models one adjustment mechanism at a time. This paper adopts a micro-simulation approach to build a model which can deal with equilibrium and disequilibrium unemployment disparities in a context where commuting and migration are possible. The model is then used to demonstrate the importance of considering both types of flows and to guide future empirical and theoretical work in the area. [source]

Matching Inefficiencies, Regional Disparities, and Unemployment

LABOUR, Issue 3 2009
Sanna-Mari Hynninen
Our results suggest that there would be a substantial decline in aggregate unemployment if (i) all local labour offices operated with full efficiency or (ii) they shared the same structure of job seekers and vacant jobs as the most favourable office. In the former case an increase in hirings would lower the average unemployment rate by 2.4 percentage points. In the latter case the decrease would be 1.4 percentage points. Further, we find that fixed effects are positively correlated with both a more favourable structure and higher efficiency. This suggests that the fixed effects may capture some part of time-invariant features in the structure and inefficiency. Thus, the role of structural factors and inefficiency in regional unemployment disparities may be higher than estimated. [source]

REGIONAL UNEMPLOYMENT DISPARITIES: AN EVALUATION OF POLICY MEASURES,

AUSTRALIAN ECONOMIC PAPERS, Issue 4 2008
N. GROENEWOLD
This paper analyses the efficacy of regional and federal government policies in reducing inter-regional unemployment disparities. We use as our framework a two-region general equilibrium model with a given freely-mobile supply of labour. We assume inter-regional migration to occur in response to inter-regional utility differentials. Each region has households, firms and a regional government. In addition to regional governments, there is a federal government. The firms in a region use a single factor, labour, to produce a single good which we assume to be different to that produced in the other region. It is supplied to households and to the regional government in the form of payroll taxes. Households consume some, trade some with households in the other region and give some up to the federal government as income tax. Firms and households bargain over wages and firms then choose employment to maximise profits. The resulting equilibrium will generally not be a full-employment one. We simulate a linearised numerical version of the model. We examine seven alternative policies, six carried out by a regional government and one by the federal government. In the first group there are traditional tax/expenditure polices as well as policies which might be seen as attacking the natural rate of unemployment: changes in unemployment benefits, changes in union power, changes in the labour force and changes in labour productivity. The federal government policy is a regionally-differentiated fiscal policy. Contrary to expectations, many policies which have traditionally been recommended to alleviate unemployment are found, in fact, to exacerbate the unemployment problem. [source]