Labour Market Adjustment: Evidence on Interstate LabourMobility

Debelle, Guy; Vickery, James

doi:10.1111/1467-8462.00112

Cited by 38 publications

(40 citation statements)

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“…In this paper, changes in the logarithm of employment are used to proxy labour demand. As in Blanchard and Katz (1992) and Debelle and Vickery (1999), our specification of the lag structure allows for shocks to labour demand cause immediate, as well as lagged, effects on the unemployment rate and labour force participation rate; but not vice versa.…”

Section: Introductionmentioning

confidence: 99%

A Markov-switching structural vector autoregressive model of boom and bust in the Australian labour market

Gaston

Rajaguru

2015

Empir Econ

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Major economic events, such as the global financial crisis, are episodes of identifiable duration that differ from other time periods. Using monthly data on the unemployment rate, labour force participation rate and employment for Australia for the period from 1978 to 2012, we estimate a Markov-switching SVAR model to examine the relationship between unemployment and labour force participation and the performance of the Australian labour market. Three distinct labour market regimes are identified. We find that the labour market switches between periods of low unemployment and high participation, prolonged periods of relative stability and short, sharp periods of high unemployment and low participation. A key finding is that, due to the behaviour of workers not in the labour force, the long-term effect of an upswing in labour hiring results in a lower unemployment rate and a lower labour force participation rate.Keywords Unemployment · Labour force participation · Regime switching JEL Classification O11 · O57 · C23 Noel Gaston and Gulasekaran Rajaguru: The comments of Felix Chan, Phillip Chindamo and two anonymous referees are gratefully acknowledged. The authors are also grateful to Lance Fisher and Jan-Egbert Sturm for feedback on an earlier version of the paper. As customary, the authors bear the responsibility for all errors and omissions.

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Section: Introductionmentioning

confidence: 99%

A Markov-switching structural vector autoregressive model of boom and bust in the Australian labour market

Gaston

Rajaguru

2015

Empir Econ

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“…Clark (1998) extended regional labour markets to include industry-specific shocks using a structural vector auto regression method. Debelle and Vickery (1999), Broersma and van Dijk (2002) and Pekkala and Kangasharju (2002) have also applied the dynamic model of Blanchard and Katz (1992) to analyse regional labour markets in different countries. 1 Most of these studies have shown that interregional migration plays a vital role in the adjustment of regional labour markets.…”

Section: Introductionmentioning

confidence: 99%

The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan

Chiang

2009

Applied Economics

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The relationship between diversity and unemployment has long been an important issue for regional scientists. This article applies quarterly data for four regions in Taiwan during the 1981-2004 period and the empirical results indicate that regional diversity can reduce the national unemployment rate, and this is solid support for the hypothesis of inter-regional migration. To further evaluate this, the interactions among regional unemployment rates are tested using the seemingly unrelated regression estimation approach, where the negative correlations of the regional residuals show that inter-regional migration is indeed an important common factor among regions. An isolated regional labour market with the highest unemployment rate in Taiwan re-confirms that inter-regional migration plays a critical role in lowering national unemployment. In sum, regional diversity can induce migration, which then reduces national unemployment.

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“…Thus, these results contrast with other OECD countries. Rather than migration and unemployment, migration alone appears as the most responsive labour market mechanism adjusting labour imbalances in the US, Australia and New Zealand (Blanchard and Katz 1992;Debelle and Vickery 1999;Maré et al 2009), while labour force participation appears to perform this role in most Western European countries (Decressin and Fatás 1995).…”

Section: Resultsmentioning

confidence: 99%

“…In developed nations, the operation of these various labour market adjustment mechanisms has been thoroughly studied. In Australia, New Zealand and the United States, labour migration has been identified as the major channel of spatial labour market adjustment (Blanchard and Katz 1992;Debelle and Vickery 1999;Maré et al 2009), whereas in Western European countries, such as the Netherlands and France labour force participation has been found to perform this role (Evers 1987;Decressin and Fatás 1995). Besides these mechanisms, in various Organisation for Economic Co-operation Development (OECD) countries including France, Italy and Austria, commuting has also played a key role in regulating spatial imbalances in the labour market (OECD 2005).…”

Section: Declaration By Authormentioning

confidence: 99%

“…In the US, Australia and New Zealand, migration has been identified as the main channel of regional labour market adjustment (Blanchard and Katz 1992;Debelle and Vickery 1999;Maré et al 2009), while in Europe labour force participation has played a key role in regulating spatial imbalances in labour markets (Decressin and Fatás 1995). Both migration and labour force participation have been major routes of adjustment in Spain (Jimeno and Bentolila 1998), while female labour force participation performed this role in the Netherlands (Evers and Van Der Veen 1985;Evers 1987), and migration and commuting in major cities of the UK (Bailey and Turok 2000), with migration alone in UK seaside towns (Beatty and Fothergill 2004).…”

Section: Introductionmentioning

confidence: 99%

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Spatial labour mobility in a transition economy: Migration and commuting in Chile

Rowe¹

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Spatial mobility is widely recognised as an integral component of national development. According to transition theory, as countries modernise and become globally connected, the intensity, forms and patterns of mobility evolve, reshaping activity networks and human settlement. Mobility transitions commonly occur over extended timeframes but can also be triggered by rapid transformations in the national context. Chile provides an ideal exemplar. Over the last four decades, it transitioned from a closed, centrally-planned economy with a socialist government to a globally integrated, market-driven system under military and democratic regimes. This has significantly transformed Chile's space economy. While prior research has explored particular facets of the mobility accompanying these shifts, no concerted attempt has been made to systematically trace the evolution of mobility in Chile and its connections to the socio-economic and political context.Chile provides a unique setting to explore these connections. It has a unique geography, settlement pattern and resource endowment; it displays levels of internal migration well above those in most parts of the world; and it has a small foreign-born population, so that unlike many other high mobility countries, internal mobility can be explored practically free from the complicating component of international migration. Chile also has the advantage of high quality migration data spanning the period in which the major socio-economic transition occurred.This thesis aims to provide a comprehensive analysis of the evolution of labour mobility in Chile by exploring connections between various forms and dimensions of mobility and the sequence of changes experienced by the country during its transition to a market-driven economy. To this end, it considers internal migration and long-distance commuting between thirteen Chilean regions, and focuses on three key dimensions: their intensity, spatial patterns and composition.It also aims to determine the role of migration and commuting in meeting shifts in labour demand. These objectives are embedded in a temporal framework that traces the changing environment within which mobility unfolds and seeks to provide robust statistical evidence on its links with structural changes in the national context. The methodological framework blends mobility transition theory derived from Zelinsky (1971) with a suite of cutting-edge statistical techniques. To implement this framework, the thesis couples a carefully-constructed historical framework with a purpose-built database, assembled by harmonising data from three consecutive censuses (1982, 1992 and 2002), which provides five-year snapshots of migration covering the periods 1977-82, 1987-92 and 1997-02, together with data on commuting in 2002.As in Australia, the US and the UK, the analysis reveals that both the intensity and the spatial impact of labour migration in Chile declined over the period of analysis, with the most marked reduction occurring in the spatial impact of migratio...

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Labour Market Adjustment: Evidence on Interstate LabourMobility

Cited by 38 publications

References 15 publications

A Markov-switching structural vector autoregressive model of boom and bust in the Australian labour market

A Markov-switching structural vector autoregressive model of boom and bust in the Australian labour market

The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan

Spatial labour mobility in a transition economy: Migration and commuting in Chile

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