An exploratory statistical analysis of regional unemployment

Abstract

In the preceding chapters quite an extensive discussion has been devoted to those elements of the regional welfare profile that represent characteristics of the intra-regional distribution of personal incomes. Interregional variations in the level and distribution of personal incomes have been indicated. These indicators reveal some differences in regional welfare, as far as welfare associated with personal incomes is concerned. A complete picture of regional welfare requires incorporation of several other indicators, like employment conditions, natural environment, cultural amenities, etc. It is not our aim, however, to present such a complete picture (cf. Section 1.3). Instead, we prefer to devote more attention to a specific welfare element that possesses a very clear association with personal incomes, viz. the conditions of employment in a region. Several characteristics of these employment conditions will be of help in explaining the observed differences in intra-regional income distributions. For example, the size and composition of the regional labour force and the level of regional unemployment will explain to a large extent the level and distribution of regional income. In Chapters 8 and 9 these inter-relations will be discussed extensively. Besides, some indicators related to employment conditions can be selected to serve as elements of the regional welfare profile. In this chapter some indicators related to regional unemployment will be discussed, which may be useful in describing regional welfare positions. As in the case of income level and inequality, we shall not attempt to indicate exactly how the indicators might enter a regional welfare function, Hence, the imposition of trade-offs is left to the welfare evaluator himself.

This chapter is a slightly modified version of the article: ‘The structure of regional unemployment in the Netherlands. An exploratory statistical analysis,’ which appeared in Regional Science and Urban Economics, vol. 7, 1977, p. 103–135.