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Labour market adjustment in the Irish regions

Author

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  • Brendan M. Walsh

Abstract

The issue of how regional labour markets adjust to shocks has received increased attention in the context of EMU, yet relatively little is known about this aspect of the Irish economy. Using the methodology developed by Blanchard and Katz (1992) this paper explores the evolution of employment, unemployment, labour force participation rates and wage rates in the regions of the Republic. The extent to which regional employment growth is self-reinforcing, the degree of hysteresis in regional unemployment and the absence of convergence in regional wage rates is discussed. The response of regions to shocks in employment is explored by estimating a log linear system in region-specific employment growth, unemployment and labour force participation rates. The implications of the findings for Irish regional development are discussed.

Suggested Citation

  • Brendan M. Walsh, 1999. "Labour market adjustment in the Irish regions," Working Papers 199906, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:199906
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    File URL: http://hdl.handle.net/10197/2985
    File Function: First version, 1999
    Download Restriction: no
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    Cited by:

    1. Brendan M. Walsh, 2004. "The transformation of the Irish labour market : 1980-2003," Open Access publications 10197/1542, School of Economics, University College Dublin.

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