The Persistence of Local Joblessness

S-Tier
Journal: American Economic Review
Year: 2018
Volume: 108
Issue: 7
Pages: 1942-70

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Differences in employment-population ratios across US commuting zones have persisted for many decades. We claim these disparities represent real gaps in economic opportunity for individuals of fixed characteristics. These gaps persist despite a strong migratory response, and we attribute this to high persistence in labor demand shocks. These trends generate a "race" between local employment and population: population always lags behind employment, yielding persistent deviations in employment rates. Methodologically, we argue the employment rate can serve as a sufficient statistic for local well-being; and we model population and employment dynamics using an error correction mechanism, which explicitly allows for disequilibrium.

Technical Details

RePEc Handle
repec:aea:aecrev:v:108:y:2018:i:7:p:1942-70
Journal Field
General
Author Count
2
Added to Database
2026-01-24