Earnings, unemployment, and housing in Britain

✍ Scribed by Gavin Cameron; Professor John Muellbauer

• Book ID: 102289158
• Publisher: John Wiley and Sons
• Year: 2001
• Tongue: English
• Weight: 135 KB
• Volume: 16
• Category: Article
• ISSN: 0883-7252
• DOI: 10.1002/jae.612

✦ Synopsis

Abstract

This paper models regional earnings and unemployment in the ten regions of Great Britain between 1972 and 1995, paying particular attention to their interaction and to the important influence of the housing market. In contrast to Blanchard and Katz (1992, 1997) for the United States, we find less persistence in British regional earnings differentials but greater persistence in regional unemployment rates. We find no evidence of a negative effect of the overall unemployment rate on the earnings of men in non‐manual, or women in full‐time, employment. However, for manual men, we find a significant elasticity of around −0.07, comparable with Blanchflower and Oswald (1994). Copyright © 2001 John Wiley & Sons, Ltd.