On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK

Korobilis, D. and Gilmartin, M. (2012) On regional unemployment: an empirical examination of the determinants of geographical differentials in the UK. Scottish Journal of Political Economy, 59(2), pp. 179-195. (doi: 10.1111/j.1467-9485.2011.00575.x)

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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.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Korompilis Magkas, Professor Dimitris
Authors: Korobilis, D., and Gilmartin, M.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Scottish Journal of Political Economy
ISSN:0036-9292
ISSN (Online):1467-9485
Published Online:02 March 2012

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