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Flexible Employment and Cross-Regional Adjustment

  • Ioannis Kaplanis
  • Vassilis Monastiriotis

Employment flexibility is commonly associated to greater labour mobility and thus faster cross-regional adjustments. The literature however offers very little hard evidence on this and quite limited theoretical guidance. This paper examines empirically the relationship between employment flexibility and cross-regional adjustment (migration) at the regional and local levels in the UK. Employment flexibility is associated to higher labour mobility (but only at a rather localised scale) and at the same time seems to reduce the responsiveness of migration to unemployment. This suggest that rising flexibility may be linked to higher persistence in spatial disparities, as intra-regional adjustments are strengthened while extraregional adjustments weakened.

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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0100.

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Date of creation: Jan 2012
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Handle: RePEc:cep:sercdp:0100
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