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The Persistence of Local Joblessness

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  • Michael Amior
  • Alan Manning

Abstract

Local differences in US employment-population ratios and unemployment rates have persisted over many decades. Using decennial census data from 1950-2010, we investigate the reasons for this. The persistence cannot be explained by permanent differences in amenities, local demographic composition or the propensity of women to work. Population does respond strongly to differences in economic fortunes, although these movements are not large enough to eliminate shocks within a decade. Over the longer run, persistence in local joblessness is largely explained by serial correlation in the demand shocks themselves.

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  • Michael Amior & Alan Manning, 2015. "The Persistence of Local Joblessness," CEP Discussion Papers dp1357, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp1357
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    Cited by:

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    2. Ioana Marinescu & Roland Rathelot, 2018. "Mismatch Unemployment and the Geography of Job Search," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 42-70, July.
    3. Verdugo, Gregory & Allègre, Guillaume, 2020. "Labour force participation and job polarization: Evidence from Europe during the Great Recession," Labour Economics, Elsevier, vol. 66(C).
    4. Emanuele Ciani & Francesco David & Guido de Blasio, 2017. "Local labour market heterogeneity in Italy: estimates and simulations using responses to labour demand shocks," Temi di discussione (Economic working papers) 1112, Bank of Italy, Economic Research and International Relations Area.
    5. Bosquet, Clément & Overman, Henry G, 2016. "Why does birthplace matter so much? Sorting, learning and geography," CEPR Discussion Papers 11085, C.E.P.R. Discussion Papers.
    6. Yagan, Danny, 2016. "The Enduring Employment Impact of Your Great Recession Location," Institute for Research on Labor and Employment, Working Paper Series qt12d0w9bs, Institute of Industrial Relations, UC Berkeley.
    7. Ciani, Emanuele & David, Francesco & de Blasio, Guido, 2019. "Local responses to labor demand shocks: A Re-assessment of the case of Italy," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 1-21.
    8. Gregory Howard, 2017. "The Migration Accelerator: Labor Mobility, Housing, and Aggregate Demand," 2017 Meeting Papers 563, Society for Economic Dynamics.
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    16. Michael Amior, 2015. "Why are Higher Skilled Workers More Mobile Geographically? The Role of the Job Surplus," CEP Discussion Papers dp1338, Centre for Economic Performance, LSE.
    17. Leopoldo Fergusson & Tatiana Hiller & Ana María Ibáñez, 2018. "Growth and inclusion trajectories of Colombian functional territories," Documentos CEDE 016947, Universidad de los Andes - CEDE.
    18. Antonio Accetturo & Andrea Lamorgese & Sauro Mocetti & Dario Pellegrino, 2020. "Housing supply elasticity and growth: evidence from Italian cities," Temi di discussione (Economic working papers) 1267, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    Local labor markets; unemployment; inactivity; internal migration; commuting;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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