Spatial aspects of labour supply in the UK

This thesis sets out to examine the main sources of variation in labour supply, and the interaction with demand conditions. The spatial dimension is taken to be of intrinsic interest (in addition to its importance in disaggregating the national picture), reflecting not only transportation costs to movement, but also problems of information diffusion . Space is therefore seen as an important dimension to issues of labour market disequilibrium and segmentation, conditioning the opportunity sets of labour market participants, and affecting outcomes. The first section of the thesis examines the determination of male migration patterns, both at the individual and aggregate levels, along lines suggested by search theory. Two main sets of conclusions emerged. Firstly, important differences were found in the behaviour of migrants across search fields, corresponding roughly with housing and employment related motivations for moving. Secondly, some support was found for the notion suggested by search theory that the spatial pattern of flows of opportunities (such as employment growth or house-building rates) were likely to be important in determining migration flows. As such, it was suggested that job creation schemes induce substantial migration adjustments, moderating the impact on local unemployment. The second portion of the thesis investigates spatial variations in married female labour force participation rates. Initially, a time series analysis was performed at the regional level, which attributed much of the regional convergence in participation to convergence in unemployment and wages. A simultaneous labour market model for the London region was then constructed. This analysis suggested that whereas male labour supply adjusted to changes in local demand conditions via induced migration or commuting, women (particularly married women) appeared to be relatively constrained in this respect, placing much of the burden of adjustment on participation rates instead.