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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.

Suggested Citation

  • Robert Dixon & Muhammad Mahmood, 2007. "Unemployment Rate Dispersion in Melbourne: The Regional Dimension," Department of Economics - Working Papers Series 983, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:983
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    References listed on IDEAS

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    1. Ron Martin, 1997. "Regional Unemployment Disparities and their Dynamics," Regional Studies, Taylor & Francis Journals, vol. 31(3), pages 237-252.
    2. Jeff Borland & Steven Kennedy, 1998. "Dimensions, Structure and History of Australian Unemployment," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.
    3. Boyd Hunter, 1995. "The Social Structure of the Australian Urban Labour Market: 1976–1991," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(2), pages 65-79, April.
    4. Ging Wong & Garnett Picot (ed.), 2001. "Working Time in Comparative Perspective, Volume 1: Patterns, Trends, and Policy Implications of Earnings Inequality and Unemployment," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wtcp, August.
    5. A. P. Thirlwall, 1966. "Regional Unemployment As A Cyclical Phenomenon1," Scottish Journal of Political Economy, Scottish Economic Society, vol. 13(2), pages 205-219, June.
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    More about this item

    Keywords

    Regional Unemployment Disparities Business Cycle Unemployment;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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