On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK

16 Pages Posted: 10 Feb 2011

See all articles by Dimitris Korobilis

Dimitris Korobilis

University of Glasgow - Adam Smith Business School

Michelle Gilmartin

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: December 17, 2010

Abstract

This paper considers the determinants of regional disparities in unemployment rates for the UK regions at NUTS-II level. We use a mixture panel data model to describe unemployment differentials between heterogeneous groups of regions. The results indicate the existence of two clusters of regions in the UK economy, characterised by high and low unemployment rates respectively. A major source of heterogeneity seems to be caused by the varying effect (between the two clusters) of the share of employment in the services sector, and we trace its origin to the fact that the "high unemployment" cluster is characterised by a higher degree of urbanization.

Keywords: distribution dynamics, regional labour markets, unemployment differentials

JEL Classification: C23, J08, J64, R12, R23

Suggested Citation

Korobilis, Dimitris and Gilmartin, Michelle, On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK (December 17, 2010). Available at SSRN: https://ssrn.com/abstract=1758882 or http://dx.doi.org/10.2139/ssrn.1758882

Dimitris Korobilis (Contact Author)

University of Glasgow - Adam Smith Business School ( email )

40 University Avenue
Gilbert Scott Building
Glasgow, Scotland G12 8QQ
United Kingdom

HOME PAGE: http://https://sites.google.com/site/dimitriskorobilis/

Michelle Gilmartin

affiliation not provided to SSRN ( email )

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