A Micro-Simulation Approach to Modelling Spatial Unemployment Disparities

This paper aims to construct a comprehensive model capable of simulating spatial unemployment disparities. The key feature of the model is that it simultaneously deals with commuting and migration. Much of the existing literature simply models one adjustment mechanism at a time. This paper adopts a micro-simulation approach to build a model which can deal with equilibrium and disequilibrium unemployment disparities in a context where commuting and migration are possible. The model is then used to demonstrate the importance of considering both types of flows and to guide future empirical and theoretical work in the area.