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An agent-based computational approach to explaining persistent spatial unemployment disparities

McArthur, David Philip; Thorsen, Inge; Ubøe, Jan
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URI
http://hdl.handle.net/11250/163983
Date
2008-09
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  • Discussion papers (FOR) [509]
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.
Publisher
Norwegian School of Economics and Business Administration. Department of Finance and Management Science
Series
Discussion paper
2008:17

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