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The persistence of regional unemployment: evidence from China

  • Zhongmin Wu

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.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 12 ()
Pages: 1417-1421

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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1417-1421
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  1. Roed, Knut, 1997. " Hysteresis in Unemployment," Journal of Economic Surveys, Wiley Blackwell, vol. 11(4), pages 389-418, December.
  2. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," Working papers 427, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Robert E. Hall, 1978. "A Theory of the Natural Unemployment Rate and the Duration of Employment," NBER Working Papers 0251, National Bureau of Economic Research, Inc.
  4. 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, 04.
  5. Barro, Robert J, 1988. "The Persistence of Unemployment," American Economic Review, American Economic Association, vol. 78(2), pages 32-37, May.
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