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SECTORAL CHANGE AND UNEMPLOYMENT DURING THE GREAT RECESSION, IN HISTORICAL PERSPECTIVE
Author(s) -
Simon Curtis
Publication year - 2014
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12126
Subject(s) - recession , unemployment , economics , pace , great recession , structural change , percentage point , structural unemployment , perspective (graphical) , turning point , labour economics , demographic economics , keynesian economics , macroeconomics , geography , period (music) , geodesy , finance , artificial intelligence , computer science , physics , acoustics
I examine the effect of sectoral change on U.S. state unemployment during the Great Recession. Of the 4.1 percentage point increase in mean state unemployment between 2007 and 2009, increased structural change explains 0.6–1.18 percentage points, and increased estimated effects of structural change 0.8–2.7 percentage points. Despite the role of housing in the recession, neither construction nor any other one sector can account for the results. Although the pace and role of structural change had returned to normal levels after the Great Recession, their effects persisted, raising mean state unemployment by 0.9–2.3 percentage points in 2011.