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Unemployment duration and individual heterogeneity: a regional study

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  • William Collier

Abstract

This paper investigates the impact of individual heterogeneity and regional influences on unemployment duration utilizing cross-section microeconomic data drawn from a representative random survey of individual job seekers for the English county of Kent. These individual-level data are unique in that they provide information concerning the personal characteristics of job seekers, alongside direct observations of both their reservation wages and job search behaviour. Such data are rare and, to the authors' knowledge, have never before been utilized in a regional context. Thus, the paper contributes to the empirical literature by analysing the extent to which individual heterogeneity and intra-regional variation in labour market opportunities impact upon the observed distribution of unemployment duration(s). In particular, the paper analyses the extent to which the duration of unemployment is determined by individual choice. This is an important issue for the formation and evaluation of policy. These results provide new insights into the long-term efficacy of current microeconomic supply-side initiatives such as 'The New Deal' and related welfare to work policies. They also advocate a more active role for macroeconomic demand-led management and provide support for a more integrated strategy for policy implementation at the urban and regional level.

Suggested Citation

  • William Collier, 2005. "Unemployment duration and individual heterogeneity: a regional study," Applied Economics, Taylor & Francis Journals, vol. 37(2), pages 133-153.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:133-153
    DOI: 10.1080/00036840412331315042
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    References listed on IDEAS

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    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. Blanden, Jo & Goodman, Alissa & Gregg, Paul & Machin, Stephen, 2002. "Changes in intergenerational mobility in Britain," LSE Research Online Documents on Economics 19507, London School of Economics and Political Science, LSE Library.
    3. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
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    Cited by:

    1. Yoon-Jun Lee & Jeong-Dong Lee, 2008. "Strategy of start-ups for IPO timing across high technology industries," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 869-877.
    2. Westerheide Nina & Kauermann Goeran, 2012. "Flexible Modelling of Duration of Unemployment Using Functional Hazard Models and Penalized Splines: A Case Study Comparing Germany and the UK," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(1), pages 1-27, January.
    3. Philip Ball & Ralf Wilke, 2009. "Job seeker's allowance in Great Britain: How does the regional labour market affect the duration until job finding?," Discussion Papers 09/03, University of Nottingham, School of Economics.
    4. Show-Ling Jang & Jennifer H. Chen, 2011. "What determines how long an innovative spell will last?," Scientometrics, Springer;Akadémiai Kiadó, vol. 86(1), pages 65-76, January.
    5. Matthew Forbes & Andrew Barker, 2017. "Local Labour Markets and Unemployment Duration," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 238-254, June.

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