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Unemployment Incidence in Interwar London


  • Hatton, Timothy J
  • Bailey, Roy E


The causes of unemployment incidence in interwar Britain have been the subject of much debate since Benjamin and Kochin claimed that it was due largely to generous unemployment benefits. We use the records for 30,000 workers from the New Survey of London Life and Labour (1929-31) to estimate the determinants of unemployment incidence. We find no significant effects of the benefit-wage ratio on the unemployment probability for adult males when we allow for skill and industry effects. Separate regressions for younger males and for females also fail to reveal significant effects from unemployment benefits on the pattern of unemployment incidence. Copyright 2002 by The London School of Economics and Political Science

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  • Hatton, Timothy J & Bailey, Roy E, 2002. "Unemployment Incidence in Interwar London," Economica, London School of Economics and Political Science, vol. 69(276), pages 631-654, November.
  • Handle: RePEc:bla:econom:v:69:y:2002:i:276:p:631-54

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    References listed on IDEAS

    1. Philip A. Haile & Ali Hortaçsu & Grigory Kosenok, 2008. "On the Empirical Content of Quantal Response Equilibrium," American Economic Review, American Economic Association, vol. 98(1), pages 180-200, March.
    2. Cox, James C. & Friedman, Daniel & Gjerstad, Steven, 2007. "A tractable model of reciprocity and fairness," Games and Economic Behavior, Elsevier, vol. 59(1), pages 17-45, April.
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    Cited by:

    1. James M. Nason & Shaun P. Vahey, 2009. "U.K. World War I and interwar data for business cycle and growth analysis," FRB Atlanta Working Paper 2009-18, Federal Reserve Bank of Atlanta.
    2. Timothy J. Hatton & Roy >. Bailey, 2000. "Seebohm Rowntree and the postwar poverty puzzle," Economic History Review, Economic History Society, vol. 53(3), pages 517-543, August.
    3. Timothy J. Hatton & Mark Thomas, 2012. "Labour Markets in Recession and Recovery: The UK and the USA in the 1920s and 1930s," CEH Discussion Papers 001, Centre for Economic History, Research School of Economics, Australian National University.
    4. Jessica S. Bean, 2015. "‘To help keep the home going’: female labour supply in interwar London," Economic History Review, Economic History Society, vol. 68(2), pages 441-470, May.
    5. Timothy J. Hatton, 2007. "Can Productivity Growth Explain the NAIRU? Long-Run Evidence from Britain, 1871-1999," Economica, London School of Economics and Political Science, vol. 74(295), pages 475-491, August.
    6. Timothy J. Hatton & Mark Thomas, 2010. "Labour markets in the interwar period and economic recovery in the UK and the USA," Oxford Review of Economic Policy, Oxford University Press, vol. 26(3), pages 463-485, Autumn.

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