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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 for the Study of Labor (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.
    2. Christina Beatty & Stephen Fothergill, 2002. "Hidden Unemployment Among Men: A Case Study," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 811-823.
    3. A. E. Green, 1997. "Exclusion, Unemployment and Non-employment," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 505-520.
    4. Nickell, Stephen J, 1980. "A Picture of Male Unemployment in Britain," Economic Journal, Royal Economic Society, vol. 90(363), pages 776-794, December.
    5. 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.
    6. 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.
    7. 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.
    8. Hughes, Gordon & McCormick, Barry & McCormick, Barry, 1987. "Housing markets, unemployment and labour market flexibility in the UK," European Economic Review, Elsevier, vol. 31(3), pages 615-641, April.
    9. Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 241-246.
    10. 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. 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.
    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, 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.

    More about this item

    Keywords

    regions; employment; unemployment; inactivity;

    JEL classification:

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

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