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Local Labour Markets and Unemployment Duration
Author(s) -
Forbes Matthew,
Barker Andrew
Publication year - 2017
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.12318
Subject(s) - unemployment , duration (music) , economics , labour economics , job creation , discouraged worker , demographic economics , job loss , structural unemployment , unemployment rate , economic growth , art , literature
This paper explores the relationship between local unemployment rates and the length of time people who have lost their job spend unemployed, using a competing risks model. High local unemployment is found to reduce the probability of re‐employment for someone who was employed prior to a period of unemployment. However, individual factors such as age, education and experience are more important predictors of re‐employment. This suggests there could be benefits from a policy response that focuses more on the individuals, and building skills that are resilient to structural change, than on job creation in local areas.