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Geographies of Labour Market
Inequality

In recent years, the local dimensions of the labour market have attracted increasing
attention from academic analysts and public policy makers alike. There is growing
realization that for a large segment of the labour force there is no such thing as the
national labour market, instead a mosaic of local and regional markets that differ in
nature, performance and regulation. Geographies of Labour Market Inequality is concerned
with these multiple geographies of employment, unemployment, work and incomes,
and their implications for public policy.
The Introduction sets out the case for thinking about the labour market in geo-
graphical terms, and discusses some of the challenges confronting labour markets in
the contemporary period. In Part Two, the focus is on the processes that produce
and reproduce inequalities in employment, unemployment and wages within and
between local labour markets: how the varying demand for labour modifies the way
the unemployed search for work in different regions; how local concentrations of
unemployment arise and interact with the operation of local housing markets and
exacerbate social polarisation; how employers reconstruct traditional low wage labour
pools to meet new employment needs; how the deregulation of the labour market
can increase regional and socio-economic disparities; and how the relationship between
households, gender and employment is being reconfigured by the increased flexibility
and fluidity of work and work processes.
Part Three then explores some of the strategies by which organized labour (unions)
and the state are seeking to respond to and ameliorate the uncertainties and inequal-
ities generated by the growing flexibility and fluidity of labour markets: in the case
of unions through attempts to protect workers threatened with job loss by promot-
ing employee ownership schemes and the socially useful investment of employee’s
pension funds; and in the case of the state through a shift to active labour market
policies (notably welfare-to-work) and the use of national minimum wages to counter
low pay. A postscript chapter examines some issues for a future research agenda.
The contributions testify to the key role that place and locality play in the opera-
tion of the labour market at a time when local context is becoming an integral part of
the design and implementation of labour market policies.

Ron Martin is Professor of Economic Geography at Cambridge University. He

is also editor of the Regional Studies Association Journal. Philip S. Morrison is
Professor of Geography at the Victoria University of Wellington, New Zealand.
Regional Development and Public Policy Series
Series editor: Ron Martin, University of Cambridge, UK

Regional Development and Public Policy is an international series that aims

to provide authoritative analyses of the new significance of regions and cities
for economic development and public policy. It seeks to combine fresh
theoretical and empirical insights with constructive policy evaluation and
debates, and to provide a definitive set of conceptual, practical and topical
studies in the field of regional and urban public policy analysis.

Regional Development Agencies in Europe

Henrik Halkier, Charlotte Damborg and Mike Danson (eds)

Social Exclusion in European Cities

Processes, experiences and responses
Ali Madanipour, Goran Cars and Judith Allen (eds)

Regional Innovation Strategies

The challenge for less-favoured regions
Kevin Morgan and Claire Nauwelaers (eds)

Foreign Direct Investment and the Global Economy

Nicholas A. Phelps and Jeremy Alden (eds)

Restructuring Industry and Territory

The experience of Europe’s regions
Anna Giunta, Arnoud Lagendijk and Andy Pike (eds)

Community Economic Development

Graham Haughton (ed.)

Out of the Ashes?

The social impact of industrial contraction and regeneration on Britain’s
mining communities
David Waddington, Chas Critcher, Bella Dicks and David Parry
Geographies of Labour
Market Inequality

Edited by Ron Martin and

Philip S. Morrison
First published 2003 by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2004.
© 2003 Ron Martin and Philip S. Morrison – selection and editorial
matter; individual chapters – the contributors
All rights reserved. No part of this book may be reprinted or
reproduced or utilised in any form or by any electronic, mechanical,
or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Geographies of labour market inequality / edited by Ron Martin
and Philip S. Morrison.
p. cm. — (Regional development and public policy)
“The origins of this book reside in a special session of papers
on Labour Market Geographies given at the Annual Conference
of the Royal Geographical Society-Institute of Geographers held
at the University of Sussex in January 2000.” Preface.
Includes bibliographical references and index.
1. Labor market—OECD countries—Regional disparities—
Congresses. 2. Labor market—Great Britain—Regional
disparities—Congresses. I. Martin, R. L. (Ron L.) II. Morrison,
Philip S., 1947– III. Series.

HD5701.3 .G46 2002

331.11′09—dc21
2002029450
ISBN 0-203-22281-4 Master e-book ISBN

ISBN 0-203-27718-X (Adobe eReader Format)

ISBN 0-415-30013-4 (hbk)
ISBN 0-415-30014-2 (pbk)
Contents

List of contributors vii

Preface viii

Introduction 1

1 Thinking about the geographies of labour 3

RON MARTIN AND PHILIP S. MORRISON

PART I
The production of local labour market inequalities 21

2 Labour market risk and the regions: evidence from

gross labour flows 23
PHILIP S. MORRISON AND OLGA BEREZOVSKY

3 Unemployment and spatial labour markets:

strong adjustment and persistent concentration 55
IAN GORDON

4 Income inequality and residential segregation: labour

market sorting and the demand for positional goods 83
PAUL CHESHIRE, VASSILIS MONASTIRIOTIS AND
STEPHEN SHEPPARD

5 Employer strategies and the fragmentation of local

employment: the case of contracting out local
authority services 110
SUZANNE REIMER

6 The new economy, labour market inequalities and

the work life balance 129
DIANE PERRONS
vi Contents
PART II
Interventions and policies 149

7 The union role in preserving jobs and communities:

the employee ownership option 151
ANDREW LINCOLN

8 The local impact of the New Deal: does geography

make a difference? 175
RON MARTIN, CORINNE NATIVEL AND PETER SUNLEY

9 The geographies of a national minimum wage:

the case of the UK 208
PETER SUNLEY AND RON MARTIN

Postscript 239

10 The geographies of labour market inequality:

some emergent issues and challenges 241
RON MARTIN AND PHILIP S. MORRISON

Index 265
Contributors

Olga Berezovsky, Institute of Geography, School of Earth Sciences, Victoria

University of Wellington, New Zealand.
Professor Paul Cheshire, Department of Geography, London School of
Economics and Political Science, UK.
Professor Ian Gordon, Department of Geography, London School of Eco-
nomics and Political Science, UK.
Dr Andrew Lincoln, Department of Geography, University of Southampton,
UK.
Professor Ron Martin, Department of Geography, University of Cambridge,
UK.
Dr Vassilis Monastiriotis, Department of Geography, London School of
Economics and Political Science, UK.
Professor Philip S. Morrison, Institute of Geography, School of Earth
Sciences, Victoria University of Wellington, New Zealand.
Dr Corinne Nativel, Department of Geography, University of Edinburgh,
UK.
Dr Diane Perrons, Department of Geography, London School of Economics
and Political Science, UK.
Dr Suzanne Reimer, Department of Geography, University of Hull, UK.
Dr Stephen Sheppard, Department of Geography, London School of Eco-
nomics and Political Science, UK.
Dr Peter Sunley, Department of Geography, University of Edinburgh, UK.
Preface

The origins of this book reside in a special session of papers on Labour

Market Geographies given at the Annual Conference of the Royal Geo-
graphical Society–Institute of Geographers held at the University of Sussex in
January 2000. During that session, it became clear that several of the papers
shared some common concerns: namely, how the operation of the labour
market generates geographical inequalities in unemployment, incomes, hous-
ing and other forms of social exclusion; how these and other forms of
inequality feed back to influence the operation of labour markets; and how
these spatialities influence the scope, form and outcomes of policy interven-
tions. It was decided, therefore, to invite the contributors of those papers to
expand and elaborate their presentations for a volume on the Geographies of
Labour Market Inequality. This book is the result.
Inevitably, producing an edited work such as this takes time, and we are
grateful to all of the contributors for their patience in responding to our
various requests for revisions and redrafting. The contributions themselves fall
into two groups: those which examine the various processes by which labour
market inequalities are produced and reproduced; and those that examine
how specific examples of political intervention – by workers and by the state
– have responded to and impacted on those inequalities. To this we have
added an introductory chapter that sets the various chapters within a broader
substantive and theoretical context, and a final postscript chapter that examines
some issues for a future research agenda.
Interest in geographical aspects of labour and labour markets has increased
rapidly in recent years, both within economic geography and economics.
This in part reflects the dramatic upheavals and transformations that are
reshaping the landscapes of work, wages and welfare. It also reflects what
appears to be an increasingly local dimension to labour market policy through-
out the OECD countries. Understanding the nature of local labour markets,
how they function and how they are regulated is, therefore, an important
field of academic enquiry. This volume is intended as a contribution to that
endeavour.

Ron Martin and Philip S. Morrison

 Thinking about the geographies of labour 1

Introduction
 Thinking about the geographies of labour 3

1 Thinking about the

geographies of labour
Ron Martin and Philip S. Morrison

The new focus on labour geographies

Over the past decade, the geography of the labour market has received
increasing attention from both academic analysts and policy-makers alike. In
economic geography, for example, research into labour and labour markets
has been growing apace (for example, Allen and Henry, 1997; Hanson and
Pratt, 1992, 1995; Clark, 1989; Herod, 1995, 1997; Lawless et al., 1998;
McDowell, 1997; Martin, 1986; 2000; Martin et al., 1996; Morrison, 1990;
Peck, 1989, 1992, 1996; Regional Studies, 1996). Basic to this new-found
focus is the belief that the labour market has an intrinsically local or spatially
constituted level of operation and regulation, that the creation and destruc-
tion of jobs, and the processes of employment, unemployment and wage
setting, and the institutional and social regulation of these processes, are, to
some extent at least, geographically constituted. It is within specific spatial
settings and contexts – local and regional labour markets – that workers seek
employment and employers hire and fire workers, that particular forms of
employment structures evolve, that specific employment practices, work cul-
tures and labour relations become established, and particular institutionalised
modes of labour regulation emerge or are imposed. While it would certainly
be an exaggeration to claim that this growing literature constitutes a fully
articulated spatial theory of labour markets, the topic is at last firmly estab-
lished as a key subject of geographical enquiry.
At the same time, economists have also discovered geography in their
theorisations and analyses of the labour market. Historically, economists have
not assigned much significance to the geography of the labour market (see
the critique by Corina, 1972). Even in the work of the most influential
labour economists, the labour market was a curiously spaceless entity, either
a purely abstract (micro-economic) construct or a macro-economic aggre-
gate. In the main, the role of location in the functioning and operation of
labour market processes tended to be viewed as secondary, and was used
either as a means of introducing barriers, such as incomplete information or
incomplete mobility, into the free functioning of market (Rees and Schultz,
1970; Robinson, 1970), or as a way of identifying those markets experiencing
4 Ron Martin and Philip S. Morrison
different employment conditions (for example, Mackay et al., 1971). How-
ever, at least two recent texts in labour economics have begun to recognise
the geography inherent in labour markets (see, for example, Bosworth et al.,
1996: 176–178; Fine, 1998: 170). Further, as part of a more general interest
in space and location, a number of economists have begun to accord explicit
attention to the geographical bases of the labour market, and to local and
regional variations in labour market performance and problems, such as re-
gional employment patterns, wage dynamics, spatial unemployment dispar-
ities and local skill and human capital formation (see, for example, Adams,
1985; Benabou, 1994; Blanchard and Katz, 1992; Blanchflower and Oswald,
1994; Decressin and Fatas, 1995; Eichengreen, 1993; Evans and McCormick,
1994; Hanson, 2000; Marston, 1985; Robinson, 1991; Topel, 1986). To be
sure, much of this recent economics literature on the geographies of labour
and labour markets seeks to apply rather orthodox neoclassical concepts in
spatial settings. Nevertheless, the fact that economists are according increasing
recognition to the geographies of employment, work and wages is a welcome
development.

New worlds of work

All of which raises a key question: what explains this sudden explosion of
academic interest in the geography of the labour market? Without doubt, the
main stimulus has been the changing world of work itself. Since the end of
the 1970s, a number of intersecting socio-economic and political develop-
ments have been gathering momentum which have already had profound
effects on the nature, organisation and allocation of work (see Figure 1.1).
Deindustrialisation and accelerating tertiarisation, a wave of dramatic techno-
logical change, increasing globalisation, and the reconfiguration of political
intervention in the labour market, have combined to sweep away the old
certainties and verities concerning employment opportunities, job security,
occupational structures, wage differentials and welfare entitlements. Labour
markets are now much more uncertain, fluid and insecure, and employment
and wage structures are much more unevenly divided than they were only
twenty years ago.
These same forces are simultaneously recasting the geographies of labour
and labour markets. At one level, major differences in labour market per-
formance have opened up between nations. For example, much has been
made of the contrast between the so-called ‘jobs miracle’ in the US, involv-
ing the creation of several million jobs since the late 1970s, and the minimal
employment growth and high unemployment of much of the European
Union. On the other hand, wage inequalities in the US have widened more
than those in the EU (with exception of the UK). Debates have arisen over
whether and to what extent this difference in labour market developments
between the US and the EU reflects a greater ability of American labour
markets to adjust to new technologies, international competition and other
 Thinking about the geographies of labour 5

Sectoral
Structural Change: Recomposition
Deindustrialisation of Employment
Tertiarisation
Privatisation

Skill
Recomposition
of Work
Technological
Change
Computerisation
Informationisation Gender
Digitisation Recomposition
of Employment

The
Labour
Market Union decline
and new work
Globalisation relations
Deepening,
intensification and
speed-up of
Increased
international
vulnerability to
interactions and
unemployment
inter-dependencies

Casualisation and
Deregulation and
increased job
Re-regulation
insecurity
Shifting power back
to employers
Shift to active labour
market policies Widening of
wage and income
disparities

Figure 1.1 Some of the key forces of change and their labour market impacts.

demand and supply side shocks. Some have even argued that the only way to
stimulate job growth in Europe is to emulate the ‘US model’ of flexible
labour markets and stable or even falling real wages. Others, however, warn
against such emulation, pointing to the inferior nature of many of the new
jobs created in the US over the past two decades, and to the marked widen-
ing of income inequalities that has taken place as a consequence (see Mishel
and Schmitt, 1995; Philpott, 1997; Herzenberg et al., 1999, for a critique of
the ‘US model’: even more mainstream economists such as Samuelson, 1997,
and Krugman, 1994, 1997, have voiced similar concerns).
6 Ron Martin and Philip S. Morrison
At another level, new patterns and forms of regional disparities in employ-
ment and unemployment have emerged within nations. In the case of the
US, for example, the ‘jobs miracle’ has not in fact been a nation-wide
phenomenon, but has been characterised by sharply divergent regional growth
patterns (see Blanchard and Katz, 1992). Within Europe, the rise and persist-
ence of high unemployment in the 1980s and 1990s was associated with a
widening of regional and sub-regional disparities in jobless rates (Baddeley
et al., 1998; Martin, 1997, 1998; Martin and Sunley, 1999; Martin and Tyler,
2000). Although (official) unemployment rates have since fallen, numerous
spatial pockets of entrenched joblessness still remain. Contrary to what some
commentators have claimed, the existence and greater persistence of marked
spatial unemployment disparities across the EU compared to the US does not
appear to be due to regional labour markets being less flexible in the former
than in the latter (Baddeley et al., 2000). And at a more local level still, in
most major cities in both Europe and the US, employment and income
disparities have intensified markedly, and localised problems of labour market
disadvantage and associated social exclusion have become much more en-
trenched (for the case of Britain, see Gregg and Wadsworth, 1999; Turok
and Edge, 1999; for Europe more generally, see Madanipour et al., 1998).
Compared to barely two decades ago, the landscape of labour market
inequality is now a much more rugged terrain. This increased spatiality of
employment, work and welfare poses a number of important empirical, theor-
etical and policy challenges, not only in terms of making sense of the new
patterns that are emerging, but also in terms of understanding how contem-
porary labour markets function and what form labour market policy inter-
ventions should take.

The new localism in labour market policy intervention

Indeed, the new focus on local and regional labour markets is not purely an
academic one. It is also an increasingly important dimension of policy. The
typical post-war model of labour market policy in the OECD countries was
basically ‘passive’ and universalist. The accent was on the provision of welfare
benefits, training measures, income support schemes and workplace entitle-
ments that were automatic (that is, set down in law, or subject only to basic
eligibility criteria), nationally uniform, and centrally determined. Thus, most
advanced economies had established systems of unemployment benefits, in-
come support and related welfare payments. These in turn were linked to the
active pursuit of full employment as a key macro-economic policy goal. Full
employment maximised the flow of taxes and national insurance payments to
fund the welfare system, while minimising the claims made on that system.
Over the past two decades or so, however, states have been busy dismant-
ling and reconfiguring this post-war policy model and their interventions in
the labour market. To varying degrees, states have deregulated the workplace,
removing previous regulatory structures and practices so as to encourage
 Thinking about the geographies of labour 7
wages and employment to respond more flexibly to local variations in labour
demand and supply conditions. Linked closely to the spread of political-
economic neoliberalism in the 1980s, the opening up of labour markets to
greater competition was deemed to be essential in order to improve national
economic efficiency in an increasingly global economy. An extensive welfare
state and strong labour entitlements were seen as being incompatible, indeed
antithetical, to this imperative (for a critique of this view, see Kitson et al.,
2000). Many would argue that the restructuring of welfare systems and the
deregulation of labour markets and employment relations that occurred during
the 1980s and 1990s, together with technical changes including those embodied
in new trade patterns, contributed in no small measure to the widening of
employment inequalities and wage dispersion over the same period.
In addition, as part of this evolving search for a new policy model, states
have begun to experiment with decentralising and devolving certain labour
market measures and policy programmes to the local level. This, it is argued,
represents an attempt to improve the flexibility and effectiveness of such
policies and programmes by tailoring them more closely to local conditions
and circumstances, harnessing the energies, knowledge and skills of local
actors and organisations, and coordinating such programmes with other local
and regional economic, social and related policies (OECD, 1998). Whilst the
degree of policy decentralisation and devolution should not be exaggerated –
most such measures are still operated within nationally-set guidelines and
budgets – a distinctive new localism in national labour market intervention
would appear to be well underway.
This new localised policy model is associated with the shift to more ‘active’
labour market interventions that are more closely targeted to specific groups
and problems. In most OECD countries, the receipt of benefits (such as un-
employment compensation) is now conditional on compulsory participation
in job-search, employment, training and other schemes (OECD, 1999). The
Workfare schemes in the US and the similar New Deal ( Welfare to Work)
programme in the UK are leading examples of this trend. And as states have
moved down this path to more localised modes of policy implementation, so
local private sector and community-based employment initiatives have prolifer-
ated, in some cases working in local partnership with government schemes,
but in other cases focusing precisely on those groups and areas excluded from
government policies.

Thinking about local labour and local labour markets

Together, these new emphases on the geographies of labour have served to
problematise how we think about local labour markets. Writing half a cen-
tury ago, in what are generally regarded as two of the classic papers on the
nature of labour markets, Kerr (1950, 1954) argued that geography acts to
‘balkanise’ or segment the labour market, imparting strong but not fixed local
boundaries. Thus the ‘national labour market’ can be thought of as a spatial
8 Ron Martin and Philip S. Morrison
mosaic of overlapping local markets (Loveridge and Mok, 1979). On the
demand side these local labour markets trace out ‘labour catchments’, that
is worker recruitment spaces of local employers (Vance, 1960). On the supply
side, local labour markets embrace the ‘employment fields’ or job search
spaces of workers (see Shen, 1998). Clearly, the more the labour supply shed
of employers and the employment field of workers coincide and involve the
same set of individuals, the more self-contained local labour markets will be.
It is this notion of ‘self-containment’ that underpins attempts to delineate the
spatial boundaries of local labour markets as ‘travel to work areas’ (see Smart,
1981; and more recently Casado-Diaz, 2000).
However, delimiting the boundaries of local labour markets is thwart with
difficulty as Carmichael (1978), Goodman (1970) and Ball (1980) recognised
early on. Not only are the boundaries fuzzy and overlapping but the nature
of the overlap depends on the particular category of labour being considered,
as illustrated for example by Green et al. (1986) in the case of gender, and
Casado-Diaz (2000) in the case of occupation. The contours, and hence the
boundaries, of a local labour market vary across different groups of worker,
being more spatially extensive for high-skill, high-wage occupations than for
low-skill, low-paid ones (see Coombes et al., 1985).
In addition, local labour markets are much more fluid and diffuse than we
might infer from travel-to-work areas, labour catchments or employment
fields. Changes and developments in transport and housing continually rede-
fine the commuting propensities, the residential mobility opportunities and
capacities of workers. At the same time, shifts in employment and skill
structures are continually changing the occupational composition and thence
the job search spaces of workers and the worker recruitment spaces of em-
ployers. In general, the trend has been for the outmost boundaries of local
labour markets to become more spatially extensive, as improvements in trans-
port, rising incomes and shifts in residential tastes have extended the journey
to work distances workers are willing to travel. As a consequence, the degree of
overlap, and hence the interaction, between spatially proximate local labour
markets have increased; a point US urban geographers were making over two
decades ago: see, for example, Berry and Gillard (1977).
One thing is quite clear therefore: local labour markets are not exogenous,
pre-given entities – fixed ‘spatial containers’ – within which various labour
processes take place. Rather, they are highly endogenous in nature, being
actively and continuously constructed and reconstructed through the very
processes that take place within and between them. This makes their
conceptualisation, theorisation and analysis far from straightforward. In prac-
tical terms, for example, we often have to assume that local labour markets are
actually exogenously set, at least in the short run, for much of the published
data available on local employment, unemployment, wages and so on, are
collected for fixed areal units that remain unchanged over the period being
analysed. Such areas are usually simply assumed to have a rough approxima-
tion to functionally meaningful local labour markets.
 Thinking about the geographies of labour 9
And to compound the identification problem, there are several differ-
ent theoretical perspectives on the nature and functioning of local labour
markets (see Figure 1.2). A simple typology would suggest four main types of
approach. In the first, orthodox economic view, local labour markets are
analysed in competitive market terms, that is in terms of the concepts of demand
and supply together with simple assumptions about the degree and speed
with which such markets adjust. Since perfectly adjusting local labour markets
should ‘clear’, the continued co-existence of unemployment, vacancies and
skill-adjusted wage differentials is attributed to the barriers, frictions and other
impediments to the free play of competitive forces. Minford’s account of
regional unemployment disparities in the UK is couched in these terms
(Minford et al., 1985; Minford and Stoney, 1991).
A second approach sees the local labour market as an imperfect market in
which the special nature of labour, the employment relation and other processes
of socio-spatial differentiation and segmentation generate non-competing and
stratified submarkets and conditions of perpetual disequilibrium (see Morrison,
1990).

Competitive Market Imperfect Market

Perspective Perspective

The local labour The local labour

market as a market as a
straightforward geographical mosaic
extension of general of non-competing,
market theory, that is a segmented and
spatial nexus of differentiated sub-
demand and supply markets subject to
interactions and inherent barriers,
equilibrium processes frictions and structural
disequilibrium
The Local
Labour
Market
Institutionalist Regulation
Perspective Perspective

The local labour The local labour

market as a socially market as a site of
embedded institutional socio-political
space of formal and regulation, in which
informal customs, specific capital-labour
norms, and practices relations, modes of
underpinning welfare intervention
employment, work and social
and wages reproduction intersect

Figure 1.2 Theoretical perspectives on the local labour market.

10 Ron Martin and Philip S. Morrison
The third and fourth perspectives move away from the competitive market
model even further. In the institutionalist approach, the local labour market is
construed as a set of social institutions embedded in local networks and systems
of formal and informal conventions, routines, customs and practices, includ-
ing those institutionalised practices that produce and reproduce patterns of
discrimination and stratification (see, for example, Hanson and Pratt, 1992,
1995). Other analysts build upon this institutionalist view and see the local
labour markets as a site of socio-political regulation, as a space within which the
various social relations and social institutions (including industrial relations
systems, legal structures, and welfare programmes) that support and shape the
process of capital accumulation take their specific form (see Peck, 1996;
Martin et al., 1996).
Clearly these different theoretical positions embody different notions of
what labour markets are and how they function and adjust to external shocks.
None on its own is adequate to capture the full complexity of local labour
markets or local labour, and each has its particular strengths and weaknesses.
The choice between them is far from trivial because each leads to different
interpretations of a given labour market problem (such as unemployment,
wage inequalities, or gender discrimination at work) and hence to different
policy prescriptions. Some of this diversity of approach and policy orientation
is evident in this book.

Geographies of labour market disadvantage:

outline of the book
The primary aim is to draw attention to the multiple geographies of labour,
employment and work and the relevance of this perspective for contem-
porary public policy. The plural ‘geographies’ is used deliberately to denote
the variable role of place in the forging of relationships between capital and
labour. Multiple geographies arise from the simultaneous presence of different
categories of labour and of various scales at which the employment relation-
ship can be understood. The contributions to this volume give a clear indica-
tion of these different (but interacting) spatial scales at which labour market
processes and problems occur.
The central problem being addressed is how to interpret contemporary
changes in the labour market, and especially labour market inequalities, as
they are manifest at particular locations. In each case there is a particular
ongoing concern with low-wage labour and with the unemployed. This
attention reflects in varying degrees a concern with inequality: between socio-
economic groups, localities, regions and nations. The motivation derives
primarily from a recognition by economic geographers of the equity and
efficiency considerations that arise when employment opportunities are un-
evenly spatially distributed both within and between countries. Although
there are sometimes useful heuristic reasons for positing spatial equilibrium
within and between local labour markets, in practice local labour markets are
 Thinking about the geographies of labour 11
much more likely to be in perpetual disequilibrium. The real, immediate and
practical concern, therefore, is over the hardship induced by shocks to par-
ticular regions in the short run. This concern arises from the fact that invest-
ment capital, infrastructure, labour, institutions and entrepreneurship experience
substantially different costs in transferring from one place to another. As
product markets change, technology evolves, and the comparative advantages
of different locations shift, so these factors must adjust. The costs they face in
doing so vary substantially, and as a result there are considerable periods
during which the least mobile factors, especially built capital and unskilled
labour, are left behind in relatively unproductive locations.
These differential levels of inertia pose particular problems for the poor and
the unemployed and for a state pressured to address spatial inequalities by a
geographical system of political representation. The spatial consequences of
lagged adjustment become particularly apparent during periods of persistently
slow or even negative growth in which opportunities for all are restricted.
The most severely disadvantaged by slow growth and the peculiarities of the
geographical adjustment process are those individuals with low levels of edu-
cation, histories of casual employment, long spells of unemployment living in
locations with poor accessibility, outmoded social and physical infrastructure
with a ‘leadership’ pool weakened by out-migration. It is for these groups in
these locations, above all, that geographical adjustment poses the greatest
challenge and for whom our quest for a better understanding of the operation
and nature of local labour markets may be the most relevant.
The contributions that follow are organised into two groups. The focus in
Part I is on the processes that produce and reproduce inequalities in employ-
ment, unemployment and wages within and between local labour markets;
while Part II examines some examples of policy interventions – by states and
unions – in response to such inequalities. While the various chapters do not
cover the full range of inequality and disadvantage that characterise contem-
porary labour markets, they do illustrate how geography – at all spatial scales
– shapes both the processes that generate such disparities and the scope and
impact of policy responses.
Stimulated by Ulrich Beck’s (1999) notion of the ‘risk society’, increasing
emphasis is being accorded to the increase in and incidence of insecurity in
the economy in general (Elliott and Atkinson, 1998) and the labour market
more particularly (Allen and Henry, 1997). Although there are various aspects
to labour market insecurity, in Chapter 2 Philip S. Morrison and Olga
Berezovsky focus their attention on how far and in what ways the risks of
leaving employment – either of becoming unemployed or of dropping out
of the labour force altogether – vary across regional labour markets, using
novel data on gross labour flows for the regions of New Zealand. As one of
the few countries to release information on gross flows at the regional level,
New Zealand offers a unique opportunity to explore regional differences in
local labour market adjustment which remain hidden in countries such as the
UK because of data limitations.
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