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Trends and Cycles in Australian State and Territory Unemployment Rates

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  • Dixon, Robert
  • Shepherd, David

Abstract

In this paper we test for the presence of common trends and cycles in the state unemployment rates, and examine the relative dispersion of unemployment rates across the states and their relationship with the business cycle. Importantly, the results suggest that, contrary to widely held opinion, there is a case for regional unemployment policy (i.e. policy of a kind that discriminates between states and territories) in Australia. In particular: in the case of Tasmania and the two territories, regional policy is needed to counter both temporary and permanent shocks; and in the case of the mainland states--and especially mainland states with above-average unemployment rates--regional policy is needed to counter permanent shocks but not temporary shocks. Copyright 2001 by The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 77 (2001)
Issue (Month): 238 (September)
Pages: 252-69

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Handle: RePEc:bla:ecorec:v:77:y:2001:i:238:p:252-69
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Find related papers by JEL classification:
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
  • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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