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Accounting for Differences in Labour Market Outcomes in Great Britain: A Regional Analysis Using the Labour Force Survey

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Author Info

  • O'Leary, Nigel C.

    ()
    (Swansea University)

  • Murphy, Philip D.

    ()
    (Swansea University)

  • Latreille, Paul L.

    ()
    (University of Sheffield)

  • Blackaby, David H.

    ()
    (Swansea University)

  • Sloane, Peter J.

    ()
    (Swansea University)

Abstract

Regional unemployment rates in Great Britain have narrowed dramatically in recent years. However, significant differences still remain in terms of both employment and economic inactivity rates, which may now better reflect relative labour market performance. This paper examines these differences in labour market outcomes using a unified empirical framework that decomposes regional differences in employment, economic inactivity and unemployment into components due to either structural or composition effects. The analysis highlights the important role that ill health and structural deficits currently play in accounting for regional differences in both employment and economic inactivity rates.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1501.

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Length: 55 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1501

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Keywords: regions; employment; unemployment; inactivity;

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References

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  1. Christina Beatty & Stephen Fothergill, 1996. "Labour Market Adjustment in Areas of Chronic Industrial Decline: The Case of the UK Coalfields," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 627-640.
  2. Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 241-246.
  3. Nick Bailey & Ivan Turok, 2000. "Adjustment to Job Loss in Britain's Major Cities," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 631-653.
  4. Erdem, Esra & Glyn, Andrew, 2001. " Job Deficits in UK Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 737-52, Special I.
  5. Nickell, Stephen J, 1980. "A Picture of Male Unemployment in Britain," Economic Journal, Royal Economic Society, vol. 90(363), pages 776-94, December.
  6. A. E. Green, 1997. "Exclusion, Unemployment and Non-employment," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 505-520.
  7. William E. Even & David A. Macpherson, 1993. "The Decline of Private-Sector Unionism and the Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 279-296.
  8. Hughes, Gordon & McCormick, Barry & McCormick, Barry, 1987. "Housing markets, unemployment and labour market flexibility in the UK," European Economic Review, Elsevier, vol. 31(3), pages 615-641, April.
  9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  10. Christina Beatty & Stephen Fothergill, 2002. "Hidden Unemployment Among Men: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 811-823.
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Cited by:
  1. David Webster, 2006. "Welfare Reform: Facing up to the Geography of Worklessness," Local Economy, Taylor and Francis Journals, vol. 21(2), pages 107-116, May.
  2. Drinkwater, Stephen, 2011. "Informal Caring and Labour Market Outcomes Within England and Wales," IZA Discussion Papers 5877, Institute for the Study of Labor (IZA).
  3. Wouter Vermeulen, 2005. "Regional disparities in a small country? An assessment of the regional dimension to the Dutch labour market on the basis of regional unemployment and participation differentials," ERSA conference papers ersa05p207, European Regional Science Association.
  4. Wouter Vermeulen, 2006. "Regional disparities in a small country? An analysis of regional unemployment and participation differentials in the Netherlands from 1975 to 2003," CPB Document 113, CPB Netherlands Bureau for Economic Policy Analysis.

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