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Unemployment Rate Dispersion in Melbourne: The Regional Dimension

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  • Robert Dixon
  • Muhammad Mahmood

Abstract

In this paper we examine unemployment rate dispersion across the (statistical) regions in the Melbourne metropolitan area. We find that the level of dispersion is positively correlated with the unemployment rate in all the regions taken together and that the ‘elasticity’ of dispersion with respect to the unemployment rate is unity, with the result that there is a tendency for the level of dispersion relative to the average unemployment rate to remain stationary over our sample period. We discuss the implications of this and show that the unemployment rate differences are persistent in the sense that the same areas exhibit relatively high (or low) unemployment rates over the whole of our sample period. We also estimate equilibrium rates of unemployment for the different regions in Melbourne and conjecture possible explanations for the differences in the level and in the persistence of the equilibrium rates.

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File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-07/983.pdf
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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 983.

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Length: 26 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mlb:wpaper:983

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
Phone: +61 3 8344 5289
Fax: +61 3 8344 6899
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Web page: http://www.economics.unimelb.edu.au
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Keywords: Regional Unemployment Disparities Business Cycle Unemployment;

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Cited by:
  1. Ruth F.G. Williams & D.P. Doessel & Jerneja Sveticic, 2012. "Are there Regional Disparities in Suicide Rates? Quantifying Suicide Rates? Quantifying Suicide Distributions for Queensland, 1990-2007," Working Papers 2012.02, School of Economics, La Trobe University.

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