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The persistence of local joblessness

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  • Amior, Michael
  • Manning, Alan

Abstract

Differences in employment-population ratios across US commut- ing zones have persisted for many decades. We claim these dispar- ities represent real gaps in economic opportunity for individuals of fxed characteristics. These gaps persist despite a strong migratory response, and we attribute this to high persistence in labor demand shocks. These trends generate a \race" between local employment and population: population always lags behind employment, yield- ing persistent deviations in employment rates. Methodologically, we argue the employment rate can serve as a sufficient statistic for local well-being; and we model population and employment dy- namics using an error correction mechanism, which explicitly al- lows for disequilibrium

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  • Amior, Michael & Manning, Alan, 2018. "The persistence of local joblessness," LSE Research Online Documents on Economics 86558, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:86558
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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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