Volume 35 - Article 30 | Pages 891-928 Author has provided data and code for replicating results

The Great Recession and America’s geography of unemployment

By Brian Thiede, Shannon Monnat

Print this page  Facebook  Twitter

 

 
Date received:13 Oct 2015
Date published:27 Sep 2016
Word count:9500
Keywords:economic geography, Great Recession, labor market, spatial inequalities, unemployment
DOI:10.4054/DemRes.2016.35.30
Additional files:readme.35-30 (text file, 1 kB)
 demographic-research.35-30 (zip file, 5 MB)
 

Abstract

Background: The Great Recession of 2007-2009 was the most severe and lengthy economic crisis in the US since the Great Depression of the 1930s. The impacts on the population were multi-dimensional, but operated largely through local labor markets.

Objective: To examine differences in recession-related changes in county unemployment rates and assess how population and place characteristics shaped these patterns.

Methods: We calculate and decompose Theil Indexes to describe recession-related changes in the distribution of unemployment rates between counties and states. We use exploratory spatial statistics to identify geographic clusters of counties that experienced similar changes in unemployment. We use spatial regression to evaluate associations between county-level recession impacts on unemployment and demographic composition, industrial structure, and state context.

Results: The recession was associated with increased inequality between county labor markets within states, but declining between-state differences. Counties that experienced disproportionate recession-related increases in unemployment were spatially clustered and characterized by large shares of historically disadvantaged racial and ethnic minority populations, low educational attainment, and heavy reliance on pro-cyclical industries. Associations between these sources of vulnerability were partially explained by unobserved state-level factors.

Conclusions: The local consequences of macroeconomic trends are associated with county population characteristics, and the structural contexts and policy environments in which they are embedded. The recession placed upward pressure on within-state disparities in local labor market conditions.

Contribution: To present new estimates of the recession’s impact on local labor markets, quantify how heterogeneous impacts affected the distribution of unemployment prevalence, and identify county characteristics associated with disproportionately large recession-related increases in unemployment.

Author's Affiliation

Brian Thiede - Pennsylvania State University, United States of America [Email]
Shannon Monnat - Pennsylvania State University, United States of America [Email]

Most recent similar articles in Demographic Research

» The fertility response to the Great Recession in Europe and the United States: Structural economic conditions and perceived economic uncertainty
Volume 36 - Article 51    | Keywords: Great Recession, unemployment

» Certainty of meeting fertility intentions declines in Europe during the 'Great Recession'
Volume 31 - Article 23    | Keywords: Great Recession, unemployment

» The influence of employment uncertainty on childbearing in France: A tempo or quantum effect?
Volume 26 - Article 1    | Keywords: labor market, unemployment

» Gender Inequalities in Employment and Wage-earning among Economic Migrants in Chinese Cities
Volume 34 - Article 6    | Keywords: labor market

» The relationship between unemployment and fertility in Italy: A time-series analysis
Volume 34 - Article 1    | Keywords: unemployment