Regional Employment Performance of Irish Industry, 1972-96: A Job Flow
JEL Classification R11 & R58
Aidan Meyler and Eric Strobl
Research Department, Central Bank of Ireland, Dublin 2, Ireland and
Department of Economics, Trinity College, Dublin 2, Ireland.
AbstractRegional goals have always played an important part in Irish
industrial policy. This paper examines the employment performance of two
sub-regions (designated and non-designated areas) as defined by industrial
policy. By employing the job flow methodology as pioneered by Davis and
Haltiwanger (1990) we find that the convergence in employment levels between
designated and non-designated areas observed in the aggregate since 1972 has
been largely driven by a higher rate of creation of jobs, that are, on average,
more persistent, in the designated areas. This difference in job creation rate,
however, cannot be attributed to any marked differences in the employment
performance by plant size or nationality of ownership type.
AcknowledgementsThe authors would like to thank Finbarr Tumelty and
Denis Slater for their generous assistance. Comments given at a workshop at
Forfas and at the 1997 IEA Annual Conference, Athlone, were also greatly
appreciated. All remaining errors are the sole responsibility of the authors.