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A model of labour-market interdependencies in the London region

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Author Info
I R Gordon
D Lamont
Abstract

This paper develops an approach to the analysis of labour markets in a metropolitan region, emphasising the interdependencies between submarket areas arising from housing-related as well as employment-related migration and from induced shifts in commuting patterns. Three distinct migration streams with differing sensitivity to distance are identified and separately incorporated in a simultaneous equation model in which employment growth, unemployment, house construction, and house prices are also endogenous. Results are presented for estimation of this eleven-equation model with cross-sectional data for seventy-one areas in inner London, outer London, and the Outer Metropolitan Area. Important linkages are identified between the availability of rental accommodation, labour migration and thus unemployment, between long-distance migration, and rates of private construction both in the areas of original destination and subsequent dispersal, and between intrametropolitan housing-related moves and the consequent decentralisation of employment. The distribution of new housing and employment opportunities, more than residential preference, is seen as the key factor in locational change within the region.

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Publisher Info
Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 14 (1982)
Issue (Month): 2 (February)
Pages: 237-264
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Handle: RePEc:pio:envira:v:14:y:1982:i:2:p:237-264

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  1. Paul Cheshire & Stefano Magrini, 2008. "Urban Growth Drivers in a Europe of Sticky People and Implicit Boundaries," SERC Discussion Papers 0010, Spatial Economics Research Centre, LSE. [Downloadable!]
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  2. Stefano Magrini, 1998. "The determinants of regional growth: An empirical analysis," ERSA conference papers ersa98p310, European Regional Science Association. [Downloadable!]
  3. Paul Cheshire & Stefano Magrini, 2006. "European Urban Growth: Now for Some Problems of Spaceless and Weightless Econometrics," ERSA conference papers ersa06p156, European Regional Science Association. [Downloadable!]
    Other versions:
  4. Paul C. Cheshire, 1998. "Urban policy - helping people or helping places? New evidence from London on social exclusion and the spatial articulation of the distribution of income," ERSA conference papers ersa98p417, European Regional Science Association. [Downloadable!]
  5. Stefano Magrini & Paul Cheshire, 2006. "Raising Urban Productivity or Attracting People? Different Causes, Different Consequences," Working Papers 2006_24Classification-JEL, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
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