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Spatial Disparities Across Labour Markets

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Abstract This report estimates housing-cost-earnings differentials across labour market areas in Britain. We show that quality-adjusted housing costs rise on average, one for one with the skill-adjusted earnings of the average working household. We shall see that the labor economics literature’s traditional view of spatial equilibrium in labor markets has clear implications about the role of migration along these two dimensions.

(PDF) Rising Labour Market Inequality: Regional Disparities and Wage ...

Blog from the Productivity Institute. Spatial disparities across labour markets: Institute for Fiscal Studies report by Henry Overman and Xiaowei Xu. The impact of public employment: Evidence from West Germany’s post-war capital Bonn: VoxEU article on boosting public sector jobs to support economically lagging regions. In this “think piece” we invited experts at the Institute for Fiscal Studies to consider the economic context of regional disparities. Although regional disparities present significant challenges, they are an important part of a vibrant economy, and the aim of policy cannot and should not be to seek to eradicate them. Further understanding how location issues such as transport infrastructure, local labour markets, local amenities and local expenditure impacts on firm-level productivities is important to understanding the spatial productivity differences that exist across the UK.

Spatial and Social Disparities

ABSTRACT We develop and apply a novel geodemographic classification of commuting flows to delineate 486 functional labour market areas (LMAs) across six commuter groups in England and Wales. Framed by the north–south divide, we then use settlement scaling to examine how economic and infrastructural agglomeration influence productivity, using the Abstract We consider disparities across local labour markets in Great Britain. Disparities in wages and employment rates are large and persistent, although smaller than 20 years ago. These disparities largely reflect the concentration of high-skilled workers, who would have better labour market outcomes wherever they live. Place-Based Policies and Spatial Disparities across European Cities by Maximilian v. Ehrlich and Henry G. Overman. Published in volume 34, issue 3, pages 128-49 of Journal of Economic Perspectives, Summer 2020, Abstract: Spatial disparities in income levels and worklessness in the European Union are

First Author: Overman H Attributed to: Centre for Economic Performance 2020-25 funded by ESRC Go back

Abstract Spatial wage disparities can result from spatial differences in the skill composition of the workforce, in non-human endowments, and in local interactions. To distinguish between these explanations, we estimate a model of wage determination across local labour markets using a very large panel of French workers.

We also explore low mobility rates in Europe and differences in labor market regulations, which help explain why employment disparities are more pronounced than for income. Do these profound spatial disparities justify place-based policies aimed at reducing them (Austin, Glaeser, and Summers 2018)? Women’s participation in the workforce is a cornerstone of gender equity and socioeconomic development. Despite India’s economic growth, women’s unemployment remains persistently high, with significant geographical and socioeconomic disparities. This study identifies high-risk areas and associated factors by examining the spatial and multilevel determinants of ABSTRACT: Spatial wage disparities can result from spatial differences in the skill com-position of the workforce, in non-human endowments, and in local interactions. To distinguish between these explanations, we estimate a model of wage determination across local labour markets using a very large panel of French workers. We control for worker characteristics, worker fixed effects,

We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. es. We present cross-country and cross-time comparable measures of spatial wage disparities between and within local labour market areas (LLMAs) for Canada, France, (West) Germany, the United Kingdom and the United States since the 1970s, assessing their importance for

The causes and consequences of spatial disparities

Spatial disparities in income and worklessness across areas of the European Union are profound and persistent. Concerns about these disparities, and the appropriate policy response, are longstanding. Two trends have re-energized popular and academic debate. One is economic: on some dimensions, disparities have stopped narrowing and started to grow. The labour market analysis and evidence released here will form only part of the IFS Deaton Review’s work on geographical inequalities. Forthcoming chapters on health inequalities and on race and ethnic inequalities will also be providing evidence on inequalities that have a systematic spatial dimension.

We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US from the 1970s to 2010s, and assess their contribution to national inequality.

Spatial wage disparities can result from spatial differences in the skill composition of the workforce, in non-human endowments, and in local interactions. To distinguish between these explanations, we estimate a model of wage determination across local labour markets using a very large panel of French workers. We control for worker characteristics, worker fixed We also explore low mobility rates in Europe and differences in labor market regulations, which help explain why employment disparities are more pronounced than for income. Do these profound spatial disparities justify place-based policies aimed at reducing them (Austin, Glaeser, and Summers 2018)? 1. Labour markets frequently show the first signs of economic perturbations in the spatial economy. Over the past few decades, spatial labour markets have shown many tidal movements, which have ind

Through quantitative analysis, we demonstrate the significance of technologies, human capital, infrastructure, and labor market frictions in explaining spatial and intra-province inequalities. Although technological disparities emerge as the primary drivers, our findings underscore the presence of strong “O-ring” inequality patterns. The special issue on Regional Disparities in the 21st Century: Evolution, Causes and Perspectives, brings together 17 papers on the theme of regional disparities and the evolving dynamics of economic growth, labor markets, innovation, and well-being across different geographical contexts.

The dissertation consists of two independent essays that examine how worker and firm sorting across local labor markets shape both regional and aggregate economic outcomes and what are the policy implications. The first chapter of this dissertation studies why productive workers and firms locate together in dense cities. I develop a new theory of two-sided sorting in which both

2. Data and methods Spatial inequalities exist at different spatial scales and are apparent across different dimensions of economic and social life. The focus here is on the disparities between functional urban areas, which are typically defined as regions with strong commuting linkages and labour market interdependencies (Dijkstra Reflecting the agenda covered by CEPR’s Research and Policy Network (RPN) on Spatial Disparities and Policy, this debate looks for answers to important questions: What drives spatial disparities in economic performance? Does the evidence suggest that gaps have widened or narrowed, and does the picture differ across countries? What should policy do about spatial Spatial inequality has become a key policy concern across much of the advanced world, prompting a spate of government action on the issue in

Place-based policies and spatial disparities across European cities

Reducing spatial disparities does not necessarily improve outcomes for poorer households work in better performing labour markets, which further magnifies individual labour market advantages. At least 60% and up to 90% of differences in average wages across areas can be attributed to differences in the types of people who work in different places.

Three forces are essential for generating spatial disparities: complementarity between worker and firm productivity, random matching within frictional local labor markets, and congestion costs.

However, the persistence of wage differentials across regions in many Western economies points to the reality that transition processes in labour markets, especially regional wage convergence, may be slow and not a forgone conclusion. Whether regional migration acts as a labour market adjustment mechanism is not an inconsequential issue. Spatial Economics Research Centre, London, UK.3. Giulia Faggio, Henry Overman, The effect of public sector employment on local labour markets, Journal of Urban Economics, Available online 31 May 2013, ISSN 0094-1190 Gibbons, Stephen and Overman, Henry G. (2012) Mostly pointless spatial econometrics. Journal of regional science, 52 (2). pp. 172-191. The characteristics of people in different areas seem to explain much of the disparity in overall labour market outcomes. Characteristics of place (namely the types of jobs available) matter more for the employment chances of disabled people and people with health conditions.

Finally, we show the increased concentration of more educated workers into particular spatial locations and rising spatial wage inequality are important features of labour market polarization, as they have resulted in faster employment growth in high skill occupations, but also in a higher demand for low wage workers in low skill occupations. We study spatial changes in labour market inequality for US states and MSAs using Census and American Community Survey data between 1980 and 2010. We report evidence of significant spatial variations in education employment shares and in the college wage premium for US states and MSAs, and show that the pattern of shifts through time has resulted in increased

The paper disentangles the role of specific factors in the evolution of regional disparities within the EU. First, investigated is the role of employment and labour productivity, with particular reference to specific market-oriented sectors (manufacturing and private services). Second, studied is the role of trade linkages and proximities in the evolution of regional These spatial disparities reflect differences in the skills of workers, the amount of business and public capital with which they work, and the technologies and management practices of the firms for which they work. These factors reinforce one another, making it difficult for policy to break the feedback loops that determine success or failure.

Spatial disparities across labour markets