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Joblessness, taxable income and regional divergence over time
Author(s) -
Corliss Michael,
Lewis Phil
Publication year - 2014
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12077
Subject(s) - economics , taxable income , unemployment , inequality , economic inequality , divergence (linguistics) , demographic economics , capital (architecture) , unemployment rate , labour economics , economic geography , geography , macroeconomics , mathematical analysis , linguistics , philosophy , mathematics , accounting , archaeology
The debate over regional inequality and economic growth is ongoing. Previous research has shown that economic growth reduces regional disparity in the unemployment rate and increases regional disparity in income as measured by C ensus data. This paper examines the jobless rate and income from taxation data to further explore the effect economic growth has had upon regional inequalities. Here, we find while economic growth acts to significantly reduce jobless rates, the differences between statistical local areas is much more stubborn particularly for remote regions. Additionally, we show a much stronger link between economic growth and regional divergence in market income, with changes in economic growth impacting mostly upon statistical local areas with higher median incomes located in capital cities and remote regions.