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An agent-based computational approach to explaining persistent spatial unemployment disparities

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Author Info
McArthur, David () (Stord/Haugesund University College)
Thorsen, Inge () (Stord/Haugesund University College)
Ubøe, Jan () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
Abstract

This paper explores possible reasons for persistent spatial unemployment disparities using agent-based computational methods. The method relies on observing the actions of thousands of individuals within an artificial society. The paper models the effect of unemployment insurance, wage disparities, region specific amenities and innate residential preferences on regional labour market interactions, accounting for both migration and commuting. An empirical example of Rogaland county in south-west Norway is given, where unemployment disparities have proved remarkably persistent for decades. The model provides non-trivial insight into the nature of spatial unemployment disparities as well as making a valuable contribution to the policy debate.

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Publisher Info
Paper provided by Department of Finance and Management Science, Norwegian School of Economics and Business Administration in its series Discussion Papers with number 2008/17.

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Length: 30 pages
Date of creation: 22 Sep 2008
Date of revision:
Handle: RePEc:hhs:nhhfms:2008_017

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Related research
Keywords: Unemployment insurance; wage disparities; region specific amenities; innate residential preferences; regional labour market interactions;

Find related papers by JEL classification:
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. McArthur, David Philip & Thorsen, Inge & Ubøe, Jan, 2009. "Congested Interregional Infrastructure, Road Pricing and Regional Labour Markets," Discussion Papers 2009/3, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
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