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Labour Market Adjustment in Regional Australia

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  • Jeremy Lawson

    (Reserve Bank of Australia)

  • Jacqueline Dwyer

    (Reserve Bank of Australia)

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    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.

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    Bibliographic Info

    Paper provided by Reserve Bank of Australia in its series RBA Research Discussion Papers with number rdp2002-04.

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    Date of creation: Jun 2002
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    Handle: RePEc:rba:rbardp:rdp2002-04

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    Related research

    Keywords: migration; regional labour markets;

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    1. Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc.
    2. Edward L. Glaeser & Jesse Shapiro, 2001. "Is There a New Urbanism? The Growth of U.S. Cities in the 1990s," NBER Working Papers 8357, National Bureau of Economic Research, Inc.
    3. repec:fth:stanho:e-95-4 is not listed on IDEAS
    4. Gregory, R.G. & Hunter, B., 1995. "The Macro Economy and the Growth of Ghettos and Urban Poverty in Australia," CEPR Discussion Papers 325, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
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    Cited by:
    1. 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.
    2. 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, vol. 43(2), pages 379-398, June.

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