Labour Market Adjustment: Evidence on Interstate Labour Mobility

Australian Economic Review, Vol. 32, No. 3, pp. 249-63, 1999

Posted: 4 Oct 2010

See all articles by Guy Debelle

Guy Debelle

Reserve Bank of Australia

James I. Vickery

Federal Reserve Bank of New York

Date Written: September 1, 1999

Abstract

In this paper, we investigate the behaviour of the Australian state labour markets, focusing on the role of geographic labour mobility. We find that interstate migration does play an important role in reducing differences in labour market conditions between states, although permanent (or very persistent) differences between state unemployment rates remain. We also find that out-migration from a state resulting from a relative downturn in its labour market occurs slowly and steadily. Most of the migration takes place, on average, within four years, and the process of adjustment is complete after seven years.

Keywords: labour mobility, labour markets, unemployment

JEL Classification: J61, E24

Suggested Citation

Debelle, Guy and Vickery, James Ian, Labour Market Adjustment: Evidence on Interstate Labour Mobility (September 1, 1999). Australian Economic Review, Vol. 32, No. 3, pp. 249-63, 1999, Available at SSRN: https://ssrn.com/abstract=1687143

Guy Debelle (Contact Author)

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

James Ian Vickery

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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