The Interaction between Regional Level Effects and Individual Level Effects in Explaining Labour Market Outcomes

Abstract

There is a significant amount of regional science literature dealing with understanding the drivers of regional labour market outcomes. A large proportion of this is undertaken at the aggregate macro-level of analysis considering, for example, the interplay between regional population growth and changing regional industry characteristics and regional unemployment. In this paper, while taking this literature as a starting point, we develop a multi-level approach to understanding employment outcomes at an individual level nested in a broader regional level (LGAs). We use data from the Housing, Income and Labour Force Dynamics Australia (HILDA) survey coupled with aggregate level socio-economic data to model unemployment risk. By utilising a multi-level approach we are better placed to understand how the macro and micro link to influence broader regional level outcomes, and to begin to suggest possible region-specific policy approaches.