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A Model of Labour-Market Interdependencies in the London Region

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  • I R Gordon
  • D Lamont

Abstract

This paper develops an approach to the analysis of labour markets in a metropolitan region, emphasising the interdependencies between submarket areas arising from housing-related as well as employment-related migration and from induced shifts in commuting patterns. Three distinct migration streams with differing sensitivity to distance are identified and separately incorporated in a simultaneous equation model in which employment growth, unemployment, house construction, and house prices are also endogenous. Results are presented for estimation of this eleven-equation model with cross-sectional data for seventy-one areas in inner London, outer London, and the Outer Metropolitan Area. Important linkages are identified between the availability of rentable accommodation, labour migration and thus unemployment, between long-distance migration, and rates of private construction both in the areas of original destination and subsequent dispersal, and between intrametropolitan housing-related moves and the consequent decentralisation of employment. The distribution of new housing and employment opportunities, more than residential preference, is seen as the key factor in locational change within the region.

Suggested Citation

  • I R Gordon & D Lamont, 1982. "A Model of Labour-Market Interdependencies in the London Region," Environment and Planning A, , vol. 14(2), pages 237-264, February.
    • Handle: RePEc:sae:envira:v:14:y:1982:i:2:p:237-264
    DOI: 10.1068/a140237
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    Cited by:

    1. Paul Cheshire & Stefano Magrini, 2009. "Urban growth drivers in a Europe of sticky people and implicit boundaries," Journal of Economic Geography, Oxford University Press, vol. 9(1), pages 85-115, January.
    2. Stefano Magrini, 1998. "The determinants of regional growth: An empirical analysis," ERSA conference papers ersa98p310, European Regional Science Association.
    3. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
    4. Thomas Niedomysl, 2011. "How Migration Motives Change over Migration Distance: Evidence on Variation across Socio-economic and Demographic Groups," Regional Studies, Taylor & Francis Journals, vol. 45(6), pages 843-855.
    5. Paul Cheshire & Stefano Magrini, 2006. "European Urban Growth: Now for Some Problems of Spaceless and Weightless Econometrics," ERSA conference papers ersa06p156, European Regional Science Association.
    6. Paul Cheshire & Stefano Magrini, 2008. "Urban Growth Drivers and Spatial Inequalities: Europe - a case with geographically sticky people," Working Papers 2008_32, Department of Economics, University of Venice "Ca' Foscari".
    7. repec:dgr:rugsom:00c06 is not listed on IDEAS
    8. Paul C. Cheshire, 1998. "Urban policy - helping people or helping places? New evidence from London on social exclusion and the spatial articulation of the distribution of income," ERSA conference papers ersa98p417, European Regional Science Association.
    9. Ian Molho, 2013. "Theories of Migration: A Review," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 526-556, November.

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