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Spatial dependence in local unemployment rates

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  • Eleonora Patacchini
  • Yves Zenou

Abstract

By explicitly considering the spatial dimension of local regional labor markets, we develop a simple dynamic model that explains the spatial correlation between unemployment rates. We then test this model by using UK local data. Our evidence shows a significant spatial dependence that has been growing over time and characterized by a low distance decay. Highly localized effects are explained by commuting flows. These results are consistent with the theoretical model. Copyright 2007, Oxford University Press.

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  • Eleonora Patacchini & Yves Zenou, 2007. "Spatial dependence in local unemployment rates," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 169-191, March.
    • Handle: RePEc:oup:jecgeo:v:7:y:2007:i:2:p:169-191
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    File URL: http://hdl.handle.net/10.1093/jeg/lbm001
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