Regional Unemployment and Employee Loyalty: Evidence from 12 UK Regions

Apergis, N., & Georgellis, Y. (2017). Regional unemployment and employee loyalty: evidence from 12 UK regions. Regional Studies, 1-11.

Posted: 2 Aug 2017 Last revised: 23 Dec 2017

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Yannis Georgellis

University of Kent

Date Written: July 31, 2017

Abstract

This study investigates the relationship between unemployment and employee loyalty across UK regions. It is argued that higher regional unemployment depresses wages and increases the cost of a potential job loss, thus providing an incentive for employees to be loyal to their employer. Using data from the Work and Employment Relations Survey (WERS), the results confirm the positive association between regional unemployment and employee loyalty. A disaggregated analysis by type of business reveals that this association is stronger in the private sector. The study adds a spatial dimension to an emergent literature that examines how unemployment affects the employed.

Keywords: Employee loyalty, wage curve, regional unemployment, WERS

JEL Classification: J6, R23, R58

Suggested Citation

Apergis, Nicholas and Georgellis, Yannis, Regional Unemployment and Employee Loyalty: Evidence from 12 UK Regions (July 31, 2017). Apergis, N., & Georgellis, Y. (2017). Regional unemployment and employee loyalty: evidence from 12 UK regions. Regional Studies, 1-11.. Available at SSRN: https://ssrn.com/abstract=3011587 or http://dx.doi.org/10.2139/ssrn.3011587

Nicholas Apergis

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Yannis Georgellis (Contact Author)

University of Kent ( email )

Canterbury, Kent CT2 7PE
United Kingdom

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