Regional Variations in Cyclical Employment

Datos Bibliográficos

ID7761516
AutoresMarie Howland (0000-0002-8190-2721, University of Maryland, College Park, autor de correspondencia), M I Howland (Institute for Urban Studies, University of Maryland, College Park, MD 20742, USA)
Año1984
Volumen16
Número7
Páginas863-877
Fecha de publicación1984-07-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEnvironment and Planning A Economy and Space (JOURNAL)
Identificadores de la revistaISSN: 0308-518X • E-ISSN: 1472-3409
EditorialSAGE Publications (PUBLISHER • US)
DOI10.1068/a160863
OpenAlexW2066568927
IdiomaEN
Citas recibidas2
Referencias citadas20

In this paper the author develops and tests a model of regional responses to national business-cycles. The model divides cyclical decline in each state into two sectors: a basic sector and a nonbasic sector. The industrial mix, capital—labor ratio, age of capital stock, level of unemployment insurance benefits, labor shortage, and extent of labor-force unionization of a state are hypothesized to influence the response to national recessions by the economy of a state. Employment decline in the nonbasic sector of the economy of a state is a function of employment decline in basic industries and is transmitted through a short-run multiplier. The model is tested on data from five post World War 2 recessions between 1950 and 1975. The findings indicate that industry mix at the two-digit Standard Industrial Code level explains 36% of the across-state variation in cyclical employment. The results also indicate that an old capital-stock, a nonunion labor force, and generous unemployment insurance benefits promote cyclical stability in state economies

Business cycle · Economic sector · Economics · Economy · Labour economics · Macroeconomics · Recession · Secondary sector of the economy · Unemployment · Employment and Welfare Studies · Fiscal Policy and Economic Growth · Taxation and Compliance Studies