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

17 Pages Posted: 3 Mar 2012

See all articles by Michelle Gilmartin

Michelle Gilmartin

affiliation not provided to SSRN

Dimitris Korobilis

University of Glasgow - Adam Smith Business School

Multiple version iconThere are 2 versions of this paper

Date Written: May 2012

Abstract

In this paper we consider 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, characterized by high and low unemployment rates, respectively. A major source of heterogeneity appears to be caused by the varying effect (between the two clusters) of the share of employment in the service sector, and we trace its origin to the fact that the high unemployment cluster is characterized by a higher degree of urbanization.

Suggested Citation

Gilmartin, Michelle and Korobilis, Dimitris, On Regional Unemployment: An Empirical Examination of the Determinants of Geographical Differentials in the UK (May 2012). Scottish Journal of Political Economy, Vol. 59, No. 2, May 2012. Available at SSRN: https://ssrn.com/abstract=2015155 or http://dx.doi.org/10.1111/j.1467-9485.2011.00575.x

Michelle Gilmartin (Contact Author)

affiliation not provided to SSRN ( email )

Dimitris Korobilis

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/

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