A spatial econometric analysis of the irreversibility of long term unemployment in Australia

Unemployment Economics Australia

Bill Mitchell and Anthea Bill use spatial econometric techniques to test whether there is evidence to support the hypothesis that the long-term unemployed represent a constraint on growth. They find no such evidence, which calls into question the logic of the plethora of active labour market programs that are aimed at the unemployed. The paper finds that employment growth or lack of it strongly impacts on regional long-term and short-term unemployment.

Publication Details