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Labour Market Adjustment: Evidence on Interstate LabourMobility

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  • Guy Debelle
  • James Vickery

Abstract

In this paper, we investigate the behaviour of the Australian state labour markets, focusing on the role of geographic labour mobility. We find that interstate migration does play an important role in reducing differences in labour market conditions between states, although permanent (or very persistent) differences between state unemployment rates remain. We also find that out-migration from a state resulting from a relative downturn in its labour market occurs slowly and steadily. Most of the migration takes place, on average, within four years, and the process of adjustment is complete after seven years.
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Suggested Citation

  • Guy Debelle & James Vickery, 1999. "Labour Market Adjustment: Evidence on Interstate LabourMobility," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(3), pages 249-263.
  • Handle: RePEc:bla:ausecr:v:32:y:1999:i:3:p:249-263
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    Citations

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    Cited by:

    1. Patrick D’Arcy & Linus Gustafsson & Christine Lewis & Trent Wiltshire, 2012. "Labour Market Turnover and Mobility," RBA Bulletin, Reserve Bank of Australia, pages 1-12, December.
    2. Werner, Daniel, 2013. "Regional convergence analysis for skill-specific employment groups," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79706, Verein für Socialpolitik / German Economic Association.
    3. Jeff Borland & Steven Kennedy, 1998. "Dimensions, Structure and History of Australian Unemployment," RBA Annual Conference Volume,in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
    4. Productivity Commission, 2009. "Review of Mutual Recognition Schemes," Research Reports, Productivity Commission, Government of Australia, number 32.
    5. Greenaway-McGrevy, Ryan & Hood, Kyle K., 2016. "Worker migration or job creation? Persistent shocks and regional recoveries," Journal of Urban Economics, Elsevier, vol. 96(C), pages 1-16.
    6. Robert Dixon & David Shepherd & James Thomson, 2001. "Regional Unemployment Disparities in Australia," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 93-102.
    7. N. Groenewold & A.J. Hagger, 2008. "Regional Unemployment Disparities: An Evaluation Of Policy Measures ," Australian Economic Papers, Wiley Blackwell, vol. 47(4), pages 355-375, December.
    8. Peter Huber, 2003. "Quantity Adjustments in Candidate Countries Regional Labour Markets," ERSA conference papers ersa03p239, European Regional Science Association.
    9. David Norman & Thomas Walker, 2007. "Co-Movement Of Australian State Business Cycles ," Australian Economic Papers, Wiley Blackwell, vol. 46(4), pages 360-374, December.
    10. Thomas Walker & David Norman, 2004. "Co-movement of Australian State Business Cycles," Econometric Society 2004 Australasian Meetings 334, Econometric Society.
    11. repec:bla:ecorec:v:93:y:2017:i:301:p:238-254 is not listed on IDEAS
    12. Shu-hen Chiang, 2012. "The sources of metropolitan unemployment fluctuations in the Greater Taipei metropolitan area," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 775-793, November.
    13. Wai Kin Choy & David C Mare & Peter Mawson, 2002. "Modelling Regional Labour Market Adjustment in New Zealand," Treasury Working Paper Series 02/01, New Zealand Treasury.
    14. Le, Anh T & Miller, Paul W, 2000. "Australia's Unemployment Problem," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 74-104, March.
    15. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
    16. Michelle Cunningham & Kathryn Davis, 2011. "Labour Market Outcomes in Regional Australia," RBA Bulletin, Reserve Bank of Australia, pages 1-8, September.
    17. David Norman & Thomas Walker, 2004. "Co-movement of Australian State Business Cycles," RBA Research Discussion Papers rdp2004-09, Reserve Bank of Australia.
    18. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    19. David Gruen & Bonnie Li & Tim Wong, 2012. "Unemployment disparity across regions," Economic Roundup, The Treasury, Australian Government, issue 2, pages 63-78, August.
    20. Jeremy Lawson & Jacqueline Dwyer, 2002. "Labour Market Adjustment in Regional Australia," RBA Research Discussion Papers rdp2002-04, Reserve Bank of Australia.
    21. Jeff Borland, 2000. "Disaggregated Models of Unemployment in Australia," Melbourne Institute Working Paper Series wp2000n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    22. Verikios, George & Zhang, Xiao-guang, 2013. "Structural change in the Australian electricity industry during the 1990s and the effect on household income distribution: A macro–micro approach," Economic Modelling, Elsevier, vol. 32(C), pages 564-575.
    23. Nicolaas Groenewold & Alfred Hagger, 2007. "Regional Unemployment Disparities: An Evaluation of Policy Measures," Economics Discussion / Working Papers 07-05, The University of Western Australia, Department of Economics.
    24. Noel Gaston & Gulasekaran Rajaguru, 2015. "A Markov-switching structural vector autoregressive model of boom and bust in the Australian labour market," Empirical Economics, Springer, vol. 49(4), pages 1271-1299, December.

    More about this item

    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
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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