Abstract
This paper employs a simultaneous-equations model to examine the regional labor market adjustment process for a sample of United States counties over the 1960–1970 period. The interaction between employment change and migration is well known, but that between employment change and labor force participation has been largely neglected. Labor force participation response, especially among women, is shown to be an important endogenous element in the labor market adjustment process. Important asymmetries are also evident between growing and declining regions, and these asymmetries suggest that the well-established link between employment and migration may have more force in growing than in declining areas.
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This study was supported by a grant from the Economic Development Administration, U.S. Department of Commerce.
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Chalmers, J.A., Greenwood, M.J. The regional labor market adjustment process: Determinants of changes in rates of labor force participation, unemployment, and migration. Ann Reg Sci 19, 1–17 (1985). https://doi.org/10.1007/BF02078771
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DOI: https://doi.org/10.1007/BF02078771