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Structural Unemployment in the United States: The Effects of Interindustry and Interregional Dispersion

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  • Parker, Jeffrey

Abstract

The effects of sectoral shifts, measured by dispersion in the growth rates of employment or earnings across industries or regions, on unemployment are tested in a specification controlling for the effects of other labor-market variables and shifts in the demographic composition of the labor force. Interindustry and geographical shifts in labor demand have significant unemployment effects, with adult males the group most strongly affected. The estimated equations imply that most of the fluctuation in unemployment over the period 1956-87 was due to microeconomic causes rather than aggregate demand. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Parker, Jeffrey, 1992. "Structural Unemployment in the United States: The Effects of Interindustry and Interregional Dispersion," Economic Inquiry, Western Economic Association International, vol. 30(1), pages 101-116, January.
    • Handle: RePEc:oup:ecinqu:v:30:y:1992:i:1:p:101-16
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    Cited by:

    1. Dimitrios Bakas & Theodore Panagiotidis & Gianluigi Pelloni, 2024. "Labour reallocation and unemployment fluctuations: A tale of two tails," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3444-3468, July.
    2. Dimitrios Bakas & Theodore Panagiotidis & Gianluigi Pelloni, 2017. "Regional And Sectoral Evidence Of The Macroeconomic Effects Of Labor Reallocation: A Panel Data Analysis," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 501-526, January.
    3. Paul R. Blackley, 1997. "The Short‐Run Relationship Between Sectoral Shifts and U.S. Labor Market Fluctuations," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 486-502, October.
    4. N. Groenewold & A.J. Hagger, 1997. "The Natural Unemployment Rate in Australia since the Seventies," Economics Discussion / Working Papers 97-24, The University of Western Australia, Department of Economics.
    5. Bakas, Dimitrios & Panagiotidis, Theodore & Pelloni, Gianluigi, 2016. "On the significance of labour reallocation for European unemployment: Evidence from a panel of 15 countries," Journal of Empirical Finance, Elsevier, vol. 39(PB), pages 229-240.
    6. Paul Blackley, 2000. "The impact of sectoral shifts in investment on unemployment in U.S. labor markets," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 28(4), pages 435-449, December.

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