Regional unemployment rate differentials and mobility of the unemployed: An analysis of the FaCS longitudinal data set

Regional unemployment rate differentials and mobility of the unemployed: An analysis of the FaCS... This study uses a longitudinal data set of administrative records to investigate geographical mobility among unemployment benefit recipients in Australia, focusing on the role of regional differences in employment opportunity and housing costs. Two statistical approaches are used. The first is to model the probability that a benefit recipient changes region within a 12-month period, with measures of employment opportunity and housing costs in the "home" region included among the explanatory variables. The second models flows between regions, with the regional differentials included among the regressors. Rather than providing evidence that unemployed persons move to areas of higher employment opportunity, the results are suggestive of poverty traps in which the unemployed move to areas of lower living costs and hence lower employment opportunity. There is some evidence of negative incentive effects of unemployment benefit levels on mobility, but this is difficult to ascertain due to the limited variation in that variable. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

Regional unemployment rate differentials and mobility of the unemployed: An analysis of the FaCS longitudinal data set

International Journal of Manpower, Volume 21 (5): 25 – Aug 1, 2000

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Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0143-7720
DOI
10.1108/01437720010377701
Publisher site
See Article on Publisher Site

Abstract

This study uses a longitudinal data set of administrative records to investigate geographical mobility among unemployment benefit recipients in Australia, focusing on the role of regional differences in employment opportunity and housing costs. Two statistical approaches are used. The first is to model the probability that a benefit recipient changes region within a 12-month period, with measures of employment opportunity and housing costs in the "home" region included among the explanatory variables. The second models flows between regions, with the regional differentials included among the regressors. Rather than providing evidence that unemployed persons move to areas of higher employment opportunity, the results are suggestive of poverty traps in which the unemployed move to areas of lower living costs and hence lower employment opportunity. There is some evidence of negative incentive effects of unemployment benefit levels on mobility, but this is difficult to ascertain due to the limited variation in that variable.

Journal

International Journal of ManpowerEmerald Publishing

Published: Aug 1, 2000

Keywords: Unemployment; Australia

References

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