Record Details

Employment Dynamics in Regional Labour Markets: An Application of Gross Flows Analysis

Labour, Employment and Work in New Zealand

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Title Employment Dynamics in Regional Labour Markets: An Application of Gross Flows Analysis
 
Creator Morrison, Philip S.
Berezovsky, Olga
 
Subject unemployment, gross labour flows, regional labour markets
 
Description This paper uses gross flows data for regions to show how the chance of leaving employment varies from place to place within New Zealand and how this risk of leaving employment influences subsequent search behaviour. We define labour market risk as the failure to sustain a continuous income stream through employment. Estimates of employment risk are made by applying a linear logit model to selected transition probabilities estimated from a quarter to quarter gross flows matrix constructed from New Zealand Household Labour Force Survey returns for the 14 year period 1986to 1999. We show how the risk of employment separations increase as the size of regional labour markers declines and their demand for labour weakens and how the diminished opportunities for employment in the peripheral regions encourages active rather than passive searching among those who leave employment. In regions with relatively high labour demand leaving employment is more likely to be followed by withdrawal from the labour force. By contrast, labour leaving employment in the weaker, provincial, labour markets is more likely to be followed by active searching (and hence unemployment). The way in which employment risk modifies search behaviour across the country affects the unemployed rate, raising it in weak markets and lowering overstating it in strong markers both temporally and geographically.
 
Publisher Victoria University of Wellington
 
Date 2000-12-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://ojs.victoria.ac.nz/LEW/article/view/1040
10.26686/lew.v0i0.1040
 
Source Labour, Employment and Work in New Zealand; 2000: Labour, Employment and Work in New Zealand
2463-2600
 
Language eng
 
Relation https://ojs.victoria.ac.nz/LEW/article/view/1040/848