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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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    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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