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Structural Adjustment and the Sectoral and Geographical Mobility of Labour

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  • Greenaway, David
  • Upward, Richard
  • Wright, Peter

Abstract

Conventional methods for analysing worker flows often focus on gross flows or transition probabilities. This is not necessarily informative for identifying the scale of labour ‘adjustment’ in an economy in the sense of the expansion and decline of industries. We develop a method that relates the individual characteristics of workers to net, rather than gross flows. Our method also allows for interactions between the regional and sectoral mobility of labour. We apply this to the UK using data from the Labour Force Survey over a period of significant structural change, and quantify the relative importance of education and housing tenure on regional and sectoral mobility.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3662.

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Date of creation: Nov 2002
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Handle: RePEc:cpr:ceprdp:3662

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Keywords: adjustment; mobility;

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References

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  1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
  2. Pissarides, Christopher A, 1978. "The Role of Relative Wages and Excess Demand in the Sectoral Flow of Labour," Review of Economic Studies, Wiley Blackwell, vol. 45(3), pages 453-67, October.
  3. Creedy, John, 1974. "Inter-Regional Mobility: A Cross-Section Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 21(1), pages 41-53, February.
  4. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, vol. 41(3-5), pages 581-589, April.
  5. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-93, August.
  6. Boyan Jovanovic & Robert Moffitt, 1990. "An Estimate of a Sectoral Model of Labor Mobility," NBER Working Papers 3227, National Bureau of Economic Research, Inc.
  7. Grossman, Gene M & Shapiro, Carl, 1982. "A Theory of Factor Mobility," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1054-69, October.
  8. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-50, November.
  9. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
  10. Henley, Andrew, 1998. "Residential Mobility, Housing Equity and the Labour Market," Economic Journal, Royal Economic Society, vol. 108(447), pages 414-27, March.
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Cited by:
  1. David Greenaway & Michelle Haynes & Chris Milner, 2002. "Adjustment, employment characteristics and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 254-276, June.
  2. Floro Ernesto Caroleo & Gianluigi Coppola, 2005. "The impact of institutions on Regional unemployment disparities," ERSA conference papers ersa05p758, European Regional Science Association.

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