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Regional unemployment and employee loyalty: evidence from 12 UK regions

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  • Nicholas Apergis
  • Yannis Georgellis

Abstract

This study investigates the relationship between unemployment and employee loyalty across UK regions. It is argued that higher regional unemployment depresses wages and increases the cost of a potential job loss, thus providing an incentive for employees to be loyal to their employer. Using data from the Work and Employment Relations Survey (WERS), the results confirm the positive association between regional unemployment and employee loyalty. A disaggregated analysis by type of business reveals that this association is stronger in the private sector. The study adds a spatial dimension to an emergent literature that examines how unemployment affects the employed.

Suggested Citation

  • Nicholas Apergis & Yannis Georgellis, 2018. "Regional unemployment and employee loyalty: evidence from 12 UK regions," Regional Studies, Taylor & Francis Journals, vol. 52(9), pages 1283-1293, September.
  • Handle: RePEc:taf:regstd:v:52:y:2018:i:9:p:1283-1293
    DOI: 10.1080/00343404.2017.1363882
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    Cited by:

    1. Tariq Hassan Haque & M Ohidul Haque, 2022. "The Unemployment Imbalance Between Non-English-Speaking Migrant Women and Australian Born Women," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(2), pages 459-478, June.

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