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The Strathprints institutional repository is a digital archive of University of Strathclyde research outputs. Strathprints provides access to thousands of Open Access research papers by University of Strathclyde researchers, including those from the School of Psychological Sciences & Health - but also papers by researchers based within the Faculties of Science, Engineering, Humanities & Social Sciences, and from the Strathclyde Business School.

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The system-wide impact on the recipient region of a regional labour subsidy

Harrigan, F. and McGregor, P.G. and Swales, J.K. (1996) The system-wide impact on the recipient region of a regional labour subsidy. Oxford Economic Papers, 48 (1). pp. 105-133. ISSN 0030-7653

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Abstract

This paper analyses the impact of the introduction of a general, automatic labour subsidy in a regional economy, concentrating on employment effects. We adopt a computable general equilibrium (CGE) approach, using a model parameterised on data from a UK region, Scotland. Two particular issues are identified which have usually been neglected in previous work in this area: the impact of the fiscal injection associated with the subsidy and the qualitative and quantitative consequences of allowing the nature of the regional labour market to vary.