Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)
An agent-based computational approach to explaining persistent spatial unemployment disparities
(), Inge Thorsen
() and Jan Ubøe
Abstract: This paper explores possible reasons for persistent
spatial unemployment disparities using agent-based computational methods.
The method relies on observing the actions of thousands of individuals
within an artificial society. The paper models the effect of unemployment
insurance, wage disparities, region specific amenities and innate
residential preferences on regional labour market interactions, accounting
for both migration and commuting. An empirical example of Rogaland county
in south-west Norway is given, where unemployment disparities have proved
remarkably persistent for decades. The model provides non-trivial insight
into the nature of spatial unemployment disparities as well as making a
valuable contribution to the policy debate.
Keywords: Unemployment insurance; wage disparities; region specific amenities; innate residential preferences; regional labour market interactions; (follow links to similar papers)
JEL-Codes: R10; R12; R15; (follow links to similar papers)
30 pages, September 22, 2008
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