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Accounting for Differences in Labour Market Outcomes in Great Britain: A Regional Analysis Using the Labour Force Survey

Author

Listed:
  • O'Leary, Nigel C.

    (Swansea University)

  • Murphy, Philip D.

    (Swansea University)

  • Latreille, Paul L.

    (University of Sheffield)

  • Blackaby, David H.

    (Swansea University)

  • Sloane, Peter J.

    (Swansea University)

Abstract

Regional unemployment rates in Great Britain have narrowed dramatically in recent years. However, significant differences still remain in terms of both employment and economic inactivity rates, which may now better reflect relative labour market performance. This paper examines these differences in labour market outcomes using a unified empirical framework that decomposes regional differences in employment, economic inactivity and unemployment into components due to either structural or composition effects. The analysis highlights the important role that ill health and structural deficits currently play in accounting for regional differences in both employment and economic inactivity rates.

Suggested Citation

  • O'Leary, Nigel C. & Murphy, Philip D. & Latreille, Paul L. & Blackaby, David H. & Sloane, Peter J., 2005. "Accounting for Differences in Labour Market Outcomes in Great Britain: A Regional Analysis Using the Labour Force Survey," IZA Discussion Papers 1501, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1501
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    References listed on IDEAS

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    1. William E. Even & David A. Macpherson, 1993. "The Decline of Private-Sector Unionism and the Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 279-296.
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    3. Christina Beatty & Stephen Fothergill, 2002. "Hidden Unemployment Among Men: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 811-823.
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    5. Nickell, Stephen J, 1980. "A Picture of Male Unemployment in Britain," Economic Journal, Royal Economic Society, vol. 90(363), pages 776-794, December.
    6. Erdem, Esra & Glyn, Andrew, 2001. "Job Deficits in UK Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 737-752, Special I.
    7. Gordon Hughes & Barry McCormick, 1991. "Housing Markets, Unemployment and Labour Market Flexibility in the U.K," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 83-114, National Bureau of Economic Research, Inc.
    8. Christina Beatty & Stephen Fothergill & Rob Macmillan, 2000. "A Theory of Employment, Unemployment and Sickness," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 617-630, October.
    9. Nick Bailey & Ivan Turok, 2000. "Adjustment to Job Loss in Britain's Major Cities," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 631-653, October.
    10. Christina Beatty & Stephen Fothergill, 1996. "Labour Market Adjustment in Areas of Chronic Industrial Decline: The Case of the UK Coalfields," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 627-640.
    11. Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 241-246.
    12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Cited by:

    1. Rosie Page, 2007. "The Impact of Gaining an NVQ Level 2: Will the Leitch Review Recommendations Address the Low Returns?," Local Economy, London South Bank University, vol. 22(2), pages 138-147, May.
    2. Wouter Vermeulen, 2006. "Regional disparities in a small country? An analysis of regional unemployment and participation differentials in the Netherlands from 1975 to 2003," CPB Document 113.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Wouter Vermeulen, 2005. "Regional disparities in a small country? An assessment of the regional dimension to the Dutch labour market on the basis of regional unemployment and participation differentials," ERSA conference papers ersa05p207, European Regional Science Association.
    4. Stephen Drinkwater, 2015. "Informal Caring and Labour Market Outcomes Within England and Wales," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 273-286, February.
    5. David Webster, 2006. "Welfare Reform: Facing up to the Geography of Worklessness," Local Economy, London South Bank University, vol. 21(2), pages 107-116, May.
    6. Roberts, Jennifer & Taylor, Karl, 2019. "New Evidence on Disability Benefit Claims in the UK: The Role of Health and the Local Labour Market," IZA Discussion Papers 12825, Institute of Labor Economics (IZA).
    7. Jennifer Roberts & Karl Taylor, 2022. "New Evidence on Disability Benefit Claims in Britain: The Role of Health and the Local Labour Market," Economica, London School of Economics and Political Science, vol. 89(353), pages 131-160, January.
    8. Amie M. Jobe & Roberto Ricciuti, 2023. "Sectoral shifts and labour market outcomes in sub-Saharan Africa," WIDER Working Paper Series wp-2023-138, World Institute for Development Economic Research (UNU-WIDER).
    9. Wouter Vermeulen, 2006. "Regional disparities in a small country? An analysis of regional unemployment and participation differentials in the Netherlands from 1975 to 2003," CPB Document 113, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    Keywords

    regions; employment; unemployment; inactivity;
    All these keywords.

    JEL classification:

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

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