Spatial dependence in local unemployment rates
构建了一个动态模型解释地方失业率的空间相关性,并用英国地方数据验证,发现空间依赖性随时间增强且随距离衰减缓慢,通勤流解释了高度本地化的效应。
By explicitly considering the spatial dimension of local regional labor markets, we develop a simple dynamic model that explains the spatial correlation between unemployment rates. We then test this model by using UK local data. Our evidence shows a significant spatial dependence that has been growing over time and characterized by a low distance decay. Highly localized effects are explained by commuting flows. These results are consistent with the theoretical model.