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The persistence of regional unemployment: evidence from China

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  • Zhongmin Wu

Abstract

The purpose of this paper is to examine the persistence of regional unemployment and to explore the sources of this persistence. Evidence from China suggests three empirical findings. First, provincial relative unemployment is more persistent than aggregate unemployment. Second, youth unemployment is less persistent than total unemployment. Third, although the western region has the highest provincial unemployment rate, it has the lowest persistence of regional unemployment. To explore the sources of this unemployment persistence, a panel data method has been developed based on the Barro Approach and Edwards work. The higher the share of industry output by state sector and collective sector, the more the regional unemployment persistence. The private sector is the main employment destination for jobless now and has acted to reduce unemployment persistence.

Suggested Citation

  • Zhongmin Wu, 2003. "The persistence of regional unemployment: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 35(12), pages 1417-1421.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1417-1421
    DOI: 10.1080/0003684032000100364
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    References listed on IDEAS

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    1. Hall, Robert E., 1979. "A theory of the natural unemployment rate and the duration of employment," Journal of Monetary Economics, Elsevier, vol. 5(2), pages 153-169, April.
    2. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," NBER Chapters,in: NBER Macroeconomics Annual 1986, Volume 1, pages 15-90 National Bureau of Economic Research, Inc.
    3. Roed, Knut, 1997. " Hysteresis in Unemployment," Journal of Economic Surveys, Wiley Blackwell, vol. 11(4), pages 389-418, December.
    4. Barro, Robert J, 1988. "The Persistence of Unemployment," American Economic Review, American Economic Association, vol. 78(2), pages 32-37, May.
    5. Sebastian Edwards & Alejandra Cox Edwards, 2000. "Economic reforms and labour markets: policy issues and lessons from Chile," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 181-230, April.
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    Cited by:

    1. repec:eee:ecosys:v:41:y:2017:i:2:p:203-214 is not listed on IDEAS
    2. Luis Alberiko Gil-Alana & Pedro Garcia-del-Barrio, 2006. "New Revelations about Unemployment Persistence in Spain," Faculty Working Papers 10/06, School of Economics and Business Administration, University of Navarra.
    3. Cheung, Chau-kiu & Ngai, Ngan-pun, 2010. "Training to raise unemployed youth's work commitment in Tianjin," Children and Youth Services Review, Elsevier, vol. 32(2), pages 298-305, February.

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