2023-09-28 14:46:10 +00:00
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abstract: 'This paper analyses the efficacy of regional and federal government
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policies in reducing inter-regional unemployment disparities. We use as
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our framework a two-region general equilibrium model with a given
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freely-mobile supply of labour. We assume inter-regional migration to
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occur in response to inter-regional utility differentials. Each region
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has households, firms and a regional government. In addition to regional
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governments, there is a federal government. The firms in a region use a
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single factor, labour, to produce a single good which we assume to be
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different to that produced in the other region. It is supplied to
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households and to the regional government in the form of payroll taxes.
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Households consume some, trade some with households in the other region
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and give some up to the federal government as income tax. Firms and
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households bargain over wages and firms then choose employment to
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maximise profits. The resulting equilibrium will generally not be a
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full-employment one.
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We simulate a linearised numerical version of the model. We examine
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seven alternative policies, six carried out by a regional government and
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one by the federal government. In the first group there are traditional
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tax/expenditure polices as well as policies which might be seen as
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attacking the natural rate of unemployment: changes in unemployment
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benefits, changes in union power, changes in the labour force and
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changes in labour productivity. The federal government policy is a
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regionally-differentiated fiscal policy.
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Contrary to expectations, many policies which have traditionally been
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recommended to alleviate unemployment are found, in fact, to exacerbate
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the unemployment problem.'
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affiliation: 'Groenewold, N (Corresponding Author), Univ Western Australia, Econ Discipline,
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Crawley, WA, Australia.
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Groenewold, N., Univ Western Australia, Econ Discipline, Crawley, WA, Australia.
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Hagger, A. J., Univ Tasmania, Hobart, Tas 7001, Australia.'
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author: Groenewold, N. and Hagger, A. J.
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author-email: nic.groenewold@uwa.edu.au
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author_list:
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- family: Groenewold
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given: N.
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- family: Hagger
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given: A. J.
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da: '2023-09-28'
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doi: 10.1111/j.1467-8454.2008.00354.x
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eissn: 1467-8454
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files: []
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issn: 0004-900X
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journal: AUSTRALIAN ECONOMIC PAPERS
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keywords-plus: 'CYCLICAL SENSITIVITY; DIFFERENTIALS; MIGRATION; RATES; STATE;
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EQUALIZATION; ELASTICITIES; REGISTRATION; PERSISTENCE; EFFICIENCY'
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language: English
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month: DEC
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number: '4'
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number-of-cited-references: '42'
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orcid-numbers: Groenewold, Nicolaas/0000-0003-3612-4470
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papis_id: ea90129a682eae97415adb680c263138
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ref: Groenewold2008regionalunemployment
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times-cited: '0'
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title: 'REGIONAL UNEMPLOYMENT DISPARITIES: AN EVALUATION OF POLICY MEASURES'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000261131300004
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usage-count-last-180-days: '0'
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usage-count-since-2013: '3'
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volume: '47'
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web-of-science-categories: Economics
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year: '2008'
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