Resilience from the micro perspective
Oxford University Press
Perhaps uniquely, we combine individual-level data from the American Community Survey 2005–2011 with aggregate data for small areas to examine the resilience of individuals’ wages to the 2008 economic crisis. A Mincer-type wage equation, incorporating market potential and employment density, is estimated, leading to a measure of resilience based on actual wages in 2011 and on a counterfactual obtained from our wage equation. We find that individuals living in areas with a higher level of market potential are more resilient, controlling for individual-level characteristics such as education and ethnicity, indicating that both individual-specific and place-specific factors are important.
New Economic Geography , USA , Urban Economics , Counterfactual , Resilience
Doran, J. and Fingleton, B. (2015) 'Resilience from the micro perspective', Cambridge Journal of Regions, Economy and Society, 8(2), pp. 205-223. doi: 10.1093/cjres/rsv004
© The Author 2015. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved. This is a pre-copyedited, author-produced PDF of an article accepted for publication in Cambridge Journal of Regions, Economy and Society following peer review. The version of record Resilience from the micro perspective, Cambridge Journal of Regions, Economy and Society, Volume 8, Issue 2, 1 July 2015, pp. 205–223 is available online at: https://doi.org/10.1093/cjres/rsv004