IDEAS home Printed from https://ideas.repec.org/p/urv/wpaper/2072-179671.html
   My bibliography  Save this paper

Flexible employment and cross- regional adjustment

Author

Listed:
  • Monastiriotis, Vassilis
  • Kaplanis, Ioannis

Abstract

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. Keywords: Employment flexibility, regional migration, labour market adjustment JEL Codes: R11, R23, J08, J61

Suggested Citation

  • Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
  • Handle: RePEc:urv:wpaper:2072/179671
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2072/179671
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zenou,Yves, 2009. "Urban Labor Economics," Cambridge Books, Cambridge University Press, number 9780521698221, September.
    2. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    3. Gavin Cameron & John Muellbauer, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-446, September.
    4. Mark D. Partridge & Dan S. Rickman, 2006. "An SVAR Model of Fluctuations in U.S. Migration Flows and State Labor Market Dynamics," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 958-980, April.
    5. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, vol. 41(3-5), pages 581-589, April.
    6. Roberto Bande & Marika Karanassou, 2009. "Labour market flexibility and regional unemployment rate dynamics: Spain 1980–1995," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 181-207, March.
    7. Marimon, Ramon & Zilibotti, Fabrizio, 1999. "Unemployment vs. Mismatch of Talents: Reconsidering Unemployment Benefits," Economic Journal, Royal Economic Society, vol. 109(455), pages 266-291, April.
    8. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    9. Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
    10. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    11. Garibaldi, Pietro, 1998. "Job flow dynamics and firing restrictions," European Economic Review, Elsevier, vol. 42(2), pages 245-275, February.
    12. Muellbauer, John & Murphy, Anthony & Cameron, Gavin, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    13. repec:bla:scotjp:v:45:y:1998:i:4:p:420-46 is not listed on IDEAS
    14. Vassilis Monastiriotis, 2006. "A Panel of Regional Indicators of Labour Market Flexibility: the UK, 1979–998," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 11, pages 221-244, AIEL - Associazione Italiana Economisti del Lavoro.
    15. Nathan J. Ashby, 2007. "Economic Freedom and Migration Flows between U.S. States," Southern Economic Journal, John Wiley & Sons, vol. 73(3), pages 677-697, January.
    16. Jens Suedekum, 2004. "Selective migration, union wage setting and unemployment disparities in West Germany," International Economic Journal, Taylor & Francis Journals, vol. 18(1), pages 33-48.
    17. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
    18. Zanetti, Francesco, 2011. "Labor market institutions and aggregate fluctuations in a search and matching model," European Economic Review, Elsevier, vol. 55(5), pages 644-658, June.
    19. Faini, Riccardo, 1999. "Trade unions and regional development," European Economic Review, Elsevier, vol. 43(2), pages 457-474, February.
    20. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-831, October.
    21. M. R. Rosenzweig & Stark, O. (ed.), 1997. "Handbook of Population and Family Economics," Handbook of Population and Family Economics, Elsevier, edition 1, volume 1, number 1.
    22. Mika Haapanen & Jari Ritsila, 2007. "Can Migration Decisions be Affected by Income Policy Interventions? Evidence from Finland," Regional Studies, Taylor & Francis Journals, vol. 41(3), pages 339-348.
    23. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    24. Olle Westerlund, 1998. "Internal Migration in Sweden: The Effects of Mobility Grants and Regional Labour Market Conditions," LABOUR, CEIS, vol. 12(2), pages 363-388, July.
    25. Abraham, Filip, 1996. "Regional adjustment and wage flexibility in the European Union," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 51-75, February.
    26. Roberto Bande & Marika Karanassou, 2009. "Labour market flexibility and regional unemployment rate dynamics: Spain 1980–1995," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 181-207, March.
    27. A Stewart Fotheringham & Phil Rees & Tony Champion & Stamatis Kalogirou & Andy R Tremayne, 2004. "The Development of a Migration Model for England and Wales: Overview and Modelling Out-Migration," Environment and Planning A, , vol. 36(9), pages 1633-1672, September.
    28. Hannu Tervo, 2000. "Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 343-360.
    29. Floro Ernesto Caroleo & Sergio Destefanis (ed.), 2006. "The European Labour Market," AIEL Series in Labour Economics, Springer, number 978-3-7908-1680-8.
    30. Michelle Baddeley & Ron Martin & Peter Tyler, 2000. "Regional Wage Rigidity: The European Union and United States Compared," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 115-141, February.
    31. Gordon, Ian R, 1985. "The Cyclical Interaction between Regional Migration, Employment and Unemployment: A Time Series Analysis for Scotland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(2), pages 135-158, June.
    32. Héctor Sala & José I. Silva, 2009. "Flexibility at the margin and labour market volatility: The case of Spain," Investigaciones Economicas, Fundación SEPI, vol. 33(2), pages 145-178, May.
    33. Vassilis Monastiriotis, 2007. "Union Retreat and Regional Economic Performance: The UK Experience," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 143-156.
    34. Rebecca M. Blank, 1994. "Social Protection versus Economic Flexibility: Is There a Trade-Off?," NBER Books, National Bureau of Economic Research, Inc, number blan94-1.
    35. Mark D. Partridge & Dan S. Rickman, 2006. "An SVAR Model of Fluctuations in U.S. Migration Flows and State Labor Market Dynamics," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 958-980, April.
    36. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    37. Burdett, Kenneth, 1979. "Unemployment Insurance Payments as a Search Subsidy: A Theoretical Analysis," Economic Inquiry, Western Economic Association International, vol. 17(3), pages 333-343, July.
    38. Hughes, Gordon & McCormick, Barry, 1981. "Do Council Housing Policies Reduce Migration between Regions?," Economic Journal, Royal Economic Society, vol. 91(364), pages 919-937, December.
    39. Molho, Ian, 1986. "Theories of Migration: A Review," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(4), pages 396-419, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vassilis Monastiriotis & Stylianos Sakkas, 2021. "Employment mobility and labour market flexibility in the EU," JRC Working Papers on Territorial Modelling and Analysis 2021-01, Joint Research Centre.
    2. Jean Dubé & Mario Polèse, 2016. "The view from a lucky country: explaining the localised unemployment impacts of the Great Recession in Canada," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 235-253.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vassilis Monastiriotis & Stylianos Sakkas, 2021. "Employment mobility and labour market flexibility in the EU," JRC Working Papers on Territorial Modelling and Analysis 2021-01, Joint Research Centre.
    2. Birgitta Rabe & Mark P. Taylor, 2012. "Differences in Opportunities? Wage, Employment and House-Price Effects on Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 831-855, December.
    3. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    4. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    5. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    6. Wouter Vermeulen & Jos Van Ommeren, 2009. "Compensation of Regional Unemployment in Housing Markets," Economica, London School of Economics and Political Science, vol. 76(301), pages 71-88, February.
    7. Bande, Roberto & Fernández, Melchor & Montuenga, Víctor, 2008. "Regional unemployment in Spain: Disparities, business cycle and wage setting," Labour Economics, Elsevier, vol. 15(5), pages 885-914, October.
    8. Fredrik Carlsen & Kåre Johansen & Lasse Sigbjørn Stambøl, 2013. "Effects of Regional Labour Markets on Migration Flows, by Education Level," LABOUR, CEIS, vol. 27(1), pages 80-92, March.
    9. Antje Mertens & Anette Haas, 2006. "Regionale Arbeitslosigkeit und Arbeitsplatzwechsel in Deutschland – Eine Analyse auf Kreisebene," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(2), pages 147-169, October.
    10. Sarantis LOLOS & Evangelia PAPAPETROU, 2012. "Unemployment disparities and persistence Assessing the evidence from Greek regions, 1981-2008," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 69-90.
    11. Jim Millington, 2000. "Migration and Age: The Effect of Age on Sensitivity to Migration Stimuli," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 521-533.
    12. Alpay Filiztekin, 2009. "Regional unemployment in Turkey," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 863-878, November.
    13. Cristina Barceló, 2006. "Housing tenure and labour mobility: a comparison across European countries," Working Papers 0603, Banco de España.
    14. Mulhern, Alan & Watson, John, 2009. "Spanish internal migration: is there anything new to say?," Economics Discussion Papers 2009-1, School of Economics, Kingston University London.
    15. Hector Sala & José I. Silva & Manuel Toledo, 2012. "Flexibility at the Margin and Labor Market Volatility in OECD Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 991-1017, September.
    16. Sari Pekkala & Hannu Tervo, 2002. "Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    17. Martin Abraham & Katrin Auspurg & Sebastian Bähr & Corinna Frodermann & Stefanie Gundert & Thomas Hinz, 2013. "Unemployment and willingness to accept job offers: results of a factorial survey experiment [Arbeitslosigkeit und Stellenannahmebereitschaft: Erste Ergebnisse eines Faktoriellen Survey Moduls]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(4), pages 283-305, December.
    18. Anette Haas & Liv Osland, 2014. "Commuting, Migration, Housing and Labour Markets: Complex Interactions," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 463-476, February.
    19. Jaewon Lim, 2017. "Out-migration from the epicenters of the housing bubble burst during and in the aftermath of the Great Recession in the USA," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 297-319, September.
    20. Stephen Drinkwater, 2003. "Estimating the willingness to move within Great Britain: Importance and implications," School of Economics Discussion Papers 1203, School of Economics, University of Surrey.

    More about this item

    Keywords

    Ocupació; Mercat de treball; Migració interna; 331 - Treball. Relacions laborals. Ocupació. Organització del treball;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:urv:wpaper:2072/179671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ariadna Casals (email available below). General contact details of provider: https://edirc.repec.org/data/deurves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.