Spatial dependence in local unemployment rates

Eleonora Patacchini, Yves Zenou

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68 Citations (Scopus)

Abstract

By explicitly considering the spatial dimension of local regional labor markets, we develop a simple dynamic model that explains the spatial correlation between unemployment rates. We then test this model by using UK local data. Our evidence shows a significant spatial dependence that has been growing over time and characterized by a low distance decay. Highly localized effects are explained by commuting flows. These results are consistent with the theoretical model.

Original languageEnglish
Pages (from-to)169-191
Number of pages23
JournalJournal of Economic Geography
Volume7
Issue number2
DOIs
Publication statusPublished - Mar 2007
Externally publishedYes

Keywords

  • Commuting flows
  • Dynamic panel data models
  • Spatial correlation
  • Unemployment

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