Unbalanced growth in the labourscape: explaining regional employment divergence. Issue 7 (3rd July 2022)

• Record Type: Journal Article
• Authors: Sobyra, Robert; Sigler, Thomas; Charles-Edwards, Elin
• Is Part Of: Regional studies. Volume 56:Issue 7(2022)
• Page Start: 1059
• Page End: 1070
• Publication Date: 2022-07-03
• Subjects: regional divergence -- regional growth -- shift–share analysis -- employment growth; R -- R1; Regional planning -- Periodicals; Regional planning -- Great Britain -- Periodicals; 307.14
• DOI: 10.1080/00343404.2021.1972958
• Languages: English
• ISSNs: 0034-3404

Abstract

ABSTRACT: This paper investigates the role of human capital in explaining divergent employment growth within advanced economies. It adds a spatial dimension to William J. Baumol's theory of 'unbalanced growth' by linking it with the concept of 'job polarization'. We develop a theory of 'geographical unbalanced growth' that explains divergent employment trajectories in terms of skill restructuring. The theory is operationalized via a novel shift–share extension, which is applied to Australian data. We find evidence of ongoing regional divergence and for our proposed mechanism. The findings reinforce the importance of active policies to attract high-skilled jobs to non-metropolitan regions.