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Labour Market Adjustment in Regional Australia

Author

Listed:
  • Jeremy Lawson

    (Reserve Bank of Australia)

  • Jacqueline Dwyer

    (Reserve Bank of Australia)

Abstract

Over the past two decades, there has been a marked divergence in regional labour market outcomes within Australia. In this paper, we examine two aspects of this divergence. First, we analyse the wide variation in employment growth rates, finding that stronger rates of employment growth were associated with industry structure, proximity to factor and product markets, and the level of regional amenity. Second, we investigate how regional labour markets adjusted to different employment conditions. While regional migration is found to be the dominant adjustment channel, the relative strength of the migration adjustment differs across regions. Out-migration, accompanying employment declines, was stronger amongst regions with initially high unemployment rates and low regional amenity. Similarly, regions with initially low rates of unemployment and high regional amenity experienced stronger rates of in-migration in response to rising employment.

Suggested Citation

  • Jeremy Lawson & Jacqueline Dwyer, 2002. "Labour Market Adjustment in Regional Australia," RBA Research Discussion Papers rdp2002-04, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp2002-04
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    File URL: https://www.rba.gov.au/publications/rdp/2002/pdf/rdp2002-04.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. George Verikios, 2004. "A Model of the World Wool Market," Economics Discussion / Working Papers 04-24, The University of Western Australia, Department of Economics.
    2. Ernst Juerg Weber, 2006. "Monetary policy in a heterogeneous monetary union: the Australian experience," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2487-2495.
    3. Robert J. Stimson, 2012. "Endogenous Factors in Regional Performance: A Review of Research in Australia," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 6, Edward Elgar Publishing.
    4. Alaric Maude, 2002. "Regional development processes and policies in Australia: a review of research 1990--2002," European Planning Studies, Taylor & Francis Journals, vol. 12(1), pages 3-26, November.
    5. Karim K Mardaneh, 2016. "Functional specialisation and socio-economic factors in population change: A clustering study in non-metropolitan Australia," Urban Studies, Urban Studies Journal Limited, vol. 53(8), pages 1591-1616, June.
    6. Phil Lewis & Michael Corliss, 2011. "The economic boom, population and structural change and the market for tradespersons," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(3), pages 289-305.
    7. Hicks, J. & Basu, P.K. & Latham, H. & Tyson, G. & Daniel, M. & Sappey, R.B., 2010. "Crossing the Great Divide: a Case Study of a Regional Nursing Labour Market in the Central West of New South Wales," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 36(1), pages 84-102.
    8. Robert Stimson & Alistair Robson & Tung-Kai Shyy, 2009. "Modeling regional endogenous growth: an application to the non-metropolitan regions of Australia," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 379-398, June.
    9. Anne Garnett, 2018. "The Changes and Challenges Facing Regional Labour Markets," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(2), pages 99-123.
    10. Robert J. Stimson & William Mitchell & David Rohde & Paul Shyy, 2011. "Using functional economic regions to model endogenous regional performance in Australia: implications for addressing the spatial autocorrelation problem," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(3), pages 131-144, August.

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    More about this item

    Keywords

    migration; regional labour markets;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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