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The System-Wide Impact on the Recipient Region of a Regional Labour Subsidy

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  • Harrigan, Frank
  • McGregor, Peter G
  • Swales, J K

Abstract

This paper analyzes the impact of the introduction of a general, automatic labor subsidy in a regional economy, concentrating on employment effects. The authors adopt a computable general equilibrium approach, using a model parameterized on data from a U.K. region, Scotland. Two particular issues are identified which have usually been neglected in previous work in this area: the impact of the fiscal injection associated with the subsidy and the qualitative and quantitative consequences of allowing the nature of the regional labor market to vary. Copyright 1996 by Royal Economic Society.

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  • Harrigan, Frank & McGregor, Peter G & Swales, J K, 1996. "The System-Wide Impact on the Recipient Region of a Regional Labour Subsidy," Oxford Economic Papers, Oxford University Press, vol. 48(1), pages 105-133, January.
    • Handle: RePEc:oup:oxecpp:v:48:y:1996:i:1:p:105-33
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    Cited by:

    1. Gillespie, Gary & McGregor, Peter G. & Swales, J. Kim & Yin, Yan Ping, 1999. "A Computable General Equilibrium Approach to the Ex Post Evaluation of Regional Development Agency Policies," ERSA conference papers ersa99pa260, European Regional Science Association.
    2. Lecca, Patrizio & McGregor, Peter G. & Swales, J. Kim, 2013. "Forward-looking and myopic regional Computable General Equilibrium models: How significant is the distinction?," Economic Modelling, Elsevier, vol. 31(C), pages 160-176.
    3. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    4. Glyn Wittwer & Mark Horridge, 2010. "Bringing Regional Detail to a CGE Model using Census Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 229-255.
    5. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    6. E McVittie & J K Swales, 1999. "Sector-Specific Factor Subsidies and Employment in a Regional Price-Endogenous Export-Base Model," Environment and Planning A, , vol. 31(12), pages 2145-2168, December.

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