THE DISPERSION OF US STATE UNEMPLOYMENT RATES - THE ROLE OF MARKET AND NONMARKET EQUILIBRIUM FACTORS

European nations, particularly the UK, have been observed to have pers istent dispersion in regional unemployment rates. The dispersion is of ten hypothesized to be caused by centralized collective bargaining and government policies that limit regional labour market adjustments. Al though the US labour market is considered more flexible, possessing hi gher rates of labour mobility and less government mandates, there also is persistent dispersion in US state unemployment rates. This paper i nvestigates the factors that underlie the persistent dispersion in US state unemployment rates. The factors examined include amenities, crim e, education, home ownership and residency patterns, industry composit ion and international migration.