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Unemployment in Regional Labor Markets: Using Structural Theories to Understand Local Jobless Rates in West Virginia

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  • Stephan Weiler

Abstract

The author uses a range of structural labor market models to understand differing regional jobless rates in a state affected by pockets of structural unemployment. Four theories of regional structural unemployment are presented, and their hypotheses are statistically evaluated using West Virginia county panel data. The author then presents case study evidence to compare these statistical results with the realities of the county labor markets. Both types of empirical evidence suggest that a segmented non-market-clearing model, in which structural unemployment stems from queuing for above-market-clearing wages in both a high-wage primary sector and a lower-wage secondary sector, can shed the most light on regional unemployment rates in West Virginia.

Suggested Citation

  • Stephan Weiler, 2001. "Unemployment in Regional Labor Markets: Using Structural Theories to Understand Local Jobless Rates in West Virginia," ILR Review, Cornell University, ILR School, vol. 54(3), pages 573-592, April.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:3:p:573-592
    DOI: 10.1177/001979390105400302
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    5. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, March.
    6. Murphy, Kevin J. & Payne, James E., 2003. "Explaining change in the natural rate of unemployment: A regional approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(2), pages 345-368.
    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. Schweikert, Jochen & Höchstötter, Markus, 2018. "Epidemiological spreading of mortgage default," Working Paper Series in Economics 112, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    9. John M McGrath & Skip Glenn & Ronald Vickroy, 2016. "Affordable, sustainable local economic research for small urban areas: 22 years of evolution and refinement," Local Economy, London South Bank University, vol. 31(6), pages 733-745, September.
    10. Goetz, Stephen & Partridge, Mark & Stephens, Heather, 2017. "The Economic Status of Rural America in the Trump Era," MPRA Paper 77830, University Library of Munich, Germany.
    11. 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.
    12. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, number 2005arotfrire.
    13. Nicolaas Groenewold & A.J. Hagger, 2004. "Regional Unemployment Disparities: Can Fiscal Policy Help?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 13-37, March.
    14. John M. McGrath & Ronald Vickroy, 2003. "A Research Approach for Tracking Local Economic Conditions in Small-Town America," Economic Development Quarterly, , vol. 17(3), pages 255-263, August.
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    16. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
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