Regional Differences in Chronic Long-Term Unemployment

Abstract

Unemployment durations for the typical jobless person have trended upward since the mid 1960s. This is troubling because the long-term unemployed are at great risk of entering the underclass and concentrations of long-term unemployment put stress on states and localities. This study examines the differing determinants of long-term versus short-term unemployment at the state level. One primary goal of this research is to examine whether employment growth is a reasonable way of reducing long durations of unemployment, or conversely, do the new jobs simply go to other individuals.

JEL Classification: J64