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Unbalanced growth in the labourscape: explaining regional employment divergence

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  • Robert Sobyra
  • Thomas Sigler
  • Elin Charles-Edwards

Abstract

This paper investigates the role of human capital in explaining divergent employment growth within advanced economies. It adds a spatial dimension to William J. Baumol’s theory of ‘unbalanced growth’ by linking it with the concept of ‘job polarization’. We develop a theory of ‘geographical unbalanced growth’ that explains divergent employment trajectories in terms of skill restructuring. The theory is operationalized via a novel shift–share extension, which is applied to Australian data. We find evidence of ongoing regional divergence and for our proposed mechanism. The findings reinforce the importance of active policies to attract high-skilled jobs to non-metropolitan regions.

Suggested Citation

  • Robert Sobyra & Thomas Sigler & Elin Charles-Edwards, 2022. "Unbalanced growth in the labourscape: explaining regional employment divergence," Regional Studies, Taylor & Francis Journals, vol. 56(7), pages 1059-1070, July.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:7:p:1059-1070
    DOI: 10.1080/00343404.2021.1972958
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    Cited by:

    1. Binfeng Ma, 2022. "The Impact of Environmental Pollution on Residents’ Income Caused by the Imbalance of Regional Economic Development Based on Artificial Intelligence," Sustainability, MDPI, vol. 15(1), pages 1-19, December.

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