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An agent-based computational approach to explaining persistent spatial unemployment disparities

Author

Listed:
  • McArthur, David

    (Stord/Haugesund University College)

  • Thorsen, Inge

    (Stord/Haugesund University College)

  • Ubøe, Jan

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

This paper explores possible reasons for persistent spatial unemployment disparities using agent-based computational methods. The method relies on observing the actions of thousands of individuals within an artificial society. The paper models the effect of unemployment insurance, wage disparities, region specific amenities and innate residential preferences on regional labour market interactions, accounting for both migration and commuting. An empirical example of Rogaland county in south-west Norway is given, where unemployment disparities have proved remarkably persistent for decades. The model provides non-trivial insight into the nature of spatial unemployment disparities as well as making a valuable contribution to the policy debate.

Suggested Citation

  • McArthur, David & Thorsen, Inge & Ubøe, Jan, 2008. "An agent-based computational approach to explaining persistent spatial unemployment disparities," Discussion Papers 2008/17, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2008_017
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    File URL: http://hdl.handle.net/11250/163984
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    References listed on IDEAS

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    Cited by:

    1. McArthur, David Philip & Thorsen, Inge & Ubøe, Jan, 2009. "Congested Interregional Infrastructure, Road Pricing and Regional Labour Markets," Discussion Papers 2009/3, Norwegian School of Economics, Department of Business and Management Science.

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    More about this item

    Keywords

    Unemployment insurance; wage disparities; region specific amenities; innate residential preferences; regional labour market interactions;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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