Full Citation

Title: The Persistence of Local Joblessness

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 00028282

DOI: 10.1257/aer.20160575

NSFID:

PMCID:

PMID:

Abstract: Differences in employment-population ratios across US commuting zones have persisted for many decades. We claim these disparities represent real gaps in economic opportunity for individuals of fixed characteristics. These gaps persist despite a strong migratory response, and we attribute this to high persistence in labor demand shocks. These trends generate a "race" between local employment and population: Population always lags behind employment, yielding persistent deviations in employment rates. Methodologically, we argue the employment rate can serve as a sufficient statistic for local well-being; and we model population and employment dynamics using an error correction mechanism, which explicitly allows for disequilibrium.

Url: https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.20160575

User Submitted?: No

Authors: Amior, Michael; Manning, Alan

Periodical (Full): American Economic Review

Issue: 7

Volume: 108

Pages: 1942-1970

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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