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Explaining Change in County Unemployment Rates in Indiana during the Great Recession and Beyond

Author

Listed:
  • Arun K. Srinivasan

    (Indiana University Southeast)

  • Kathleen G. Arano

    (Indiana University Southeast)

  • Janardhanan A. Alse

    (Indiana University Southeast)

Abstract

The specialization of a local area through its industrial employment composition can explain why counties may be more susceptible or insulated to national economic events. This paper examines change in county unemployment rates in Indiana between 2006 and 2015. We find that change in relative employment rates in manufacturing, i.e., relative demand shock, is a significant predictor of change in county unemployment rates, among other relevant industries. In addition, labor mobility tempers fluctuations in local unemployment rates immediately following recession but heightens it as the local economy moves further into recovery. Lastly, more rural counties experience greater fluctuations in unemployment rates in post recovery.

Suggested Citation

  • Arun K. Srinivasan & Kathleen G. Arano & Janardhanan A. Alse, 2020. "Explaining Change in County Unemployment Rates in Indiana during the Great Recession and Beyond," Journal of Economic Insight, Missouri Valley Economic Association, vol. 46(2), pages 1-19.
    • Handle: RePEc:mve:journl:v:46:y:2020:i:2:p:1-19
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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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