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Regional Earnings and Unemployment--A Simultaneous Approach

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  • Blackaby, D H
  • Manning, D N
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    Abstract

    This paper presents an econometric analysis of the interaction between regional unemployment and regional earnings in Britain. A two-equation error-correction model of regional earnings and unemployment determination is estimated on data for 1972 to 1988 inclusive. The wage equation relates regional earnings to unemployment, long-term unemployment, and indices of living costs both including and excluding housing costs. The unemployment equation relates regional unemployment to earnings and real output. Higher relative unemployment and lower regional living costs both lead to lower regional earnings; however, increases in regional earnings and decreases in regional output lead to increased relative unemployment. Copyright 1992 by Blackwell Publishing Ltd

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    Bibliographic Info

    Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

    Volume (Year): 54 (1992)
    Issue (Month): 4 (November)
    Pages: 481-501

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    Handle: RePEc:bla:obuest:v:54:y:1992:i:4:p:481-501

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    Cited by:
    1. Cameron, Gavin & Muellbauer, John, 2000. "Earnings, Unemployment, And Housing: Evidence From A Panel Of British Regions," CEPR Discussion Papers 2404, C.E.P.R. Discussion Papers.
    2. Gavin Cameron & John Muellbauer, 2001. "A Study in Structural Change: Relative Earnings in Wales Since the 1970s," Economics Series Working Papers 61, University of Oxford, Department of Economics.
    3. Bill Collier, 2000. "The UK Wage Curve: New Evidence from the British Household Panel Survey," Studies in Economics 0010, Department of Economics, University of Kent.
    4. César Augusto MERCHÁN HERNÁNDEZ, 2014. "Desempleo y ocupación en las ciudades colombianas. Un ejercicio con datos panel," ARCHIVOS DE ECONOMÍA 011212, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    5. David Castro Lugo, 2006. "Curva salarial: una aplicación para el caso de México, 1993-2002," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 21(2), pages 233-273.
    6. Wouter Vermeulen & Jos Van Ommeren, 2009. "Compensation of Regional Unemployment in Housing Markets," Economica, London School of Economics and Political Science, vol. 76(301), pages 71-88, 02.
    7. Gavin Cameron & John Muellbauer, 2001. "Earnings, unemployment, and housing in Britain," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 203-220.
    8. Wouter Vermeulen & Jos van Ommeren, 2005. "Compensation of Regional Unemployment in Housing Markets," Tinbergen Institute Discussion Papers 05-093/3, Tinbergen Institute.
    9. Chuang, Yih-Chyi & Lai, Wei-Wen, 2008. "The Sources of Taiwan's Regional Unemployment : A Cross-Region Panel Analysis," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 49(2), pages 47-65, December.

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