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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. Mulyana Soekarni & Iman Sugema & Priyo R. Widodo, 2009. "Persistensi Pengangguran Di Indonesia dan Upaya Penanggulangannya Berdasarkan Analisis Data Mikro," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 12(2), pages 151-192, October.
    2. Mulyana Soekarni & Iman Sugema & Priyo R. Widodo, 2009. "Strategy On Reducing Unemployment Persistence: A Micro Analysis In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 12(2), pages 151-192, October.
    3. Marukawa, Tomoo, 2017. "Regional unemployment disparities in China," Economic Systems, Elsevier, vol. 41(2), pages 203-214.
    4. 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.
    5. Zhongmin Wu, 2004. "Wage curve for urban China: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, vol. 11(7), pages 425-428.
    6. O. Mikhail & C. J. Eberwein & J. Handa, 2006. "Estimating persistence in Canadian unemployment: evidence from a Bayesian ARFIMA," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1809-1819.
    7. 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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