There is a considerable body of evidence showing that it is the inflow into unemployment that drives the unemployment rate up and down and so from a policy point of view an important question is whether or not movements in state inflow reflect the impact of state-specific shocks or common shocks affecting the entire economy This paper reports the results of using principal components analysis to search for a common cycle in time series data for the rate at which people are leaving employment and moving to unemployment in the six states of Australia. It is concluded that there is a common cyclical component to each of the state’s separation rates but that it accounts for only a small part of the total variation we observe in the data set. In addition there are large idiosyncratic variations especially in the case of three of the six states. These findings strengthen the case for regional labour market policy in Australia.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Length: 21 pages Date of creation: 2007 Date of revision: Handle: RePEc:mlb:wpaper:991
Contact details of provider: 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 Email: Web page: http://www.economics.unimelb.edu.au More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Colemann Leong).
References listed on IDEAS 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.: