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The Hiring Function in Local Labour Markets in Britain


  • R J Bennett
  • R R Pinto


The labour market hiring function is estimated in the 104 areas of Training and Enterprise Councils (TECs) and Local Enterprise Companies (LECs) that cover Britain. The model gives good overall fit with a general pattern evidencing constant returns to scale between unemployment and vacancies. Important variations occur between local TEC/LEC areas, particularly for islands, the City of London, suburban commuter areas, and coalfields or other areas suffering steep rises in redundancies. The estimates suggest that there is a linear aggregation between the local and national level. It is also concluded that the present boundaries of TEC/LEC areas should be reviewed, particularly in metropolitan areas, or that government contracts should give a strong emphasis to TECs or LECs working more closely together in these areas.

Suggested Citation

  • R J Bennett & R R Pinto, 1994. "The Hiring Function in Local Labour Markets in Britain," Environment and Planning A, , vol. 26(12), pages 1957-1974, December.
  • Handle: RePEc:sae:envira:v:26:y:1994:i:12:p:1957-1974

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    Cited by:

    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in ritain," Labour Economics, Elsevier, vol. 8(3), pages 313-333, June.
    3. Elzbieta Antczak & Ewa Galecka-Burdziak & Robert Pater, 2016. "Spatial Labour Market Matching," CERGE-EI Working Papers wp578, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Stefan Eriksson & Karolina Stadin, 2017. "What are the determinants of hiring? The importance of product market demand and search frictions," Applied Economics, Taylor & Francis Journals, vol. 49(50), pages 5144-5165, October.
    5. Eriksson, Stefan & Stadin, Karolina, 2015. "What are the determinants of hiring? The role of demand and supply factors," Working Paper Series 2015:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    6. Eriksson, Stefan & Stadin, Karolina, 2011. "The Determinants of Hiring in Local Labor Markets: The Role of Demand and Supply Factors," Working Paper Series 2011:19, Uppsala University, Department of Economics.

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