Output Shocks and Unemployment: New Evidence on Regional Disparities

We estimate five VAR models and use generalized impulse response functions to examine the relationship between output and unemployment at the regional level. Further, within regions we consider the degree to which the cyclical nature of unemployment might vary across race and gender groups. We find some variation in the relationship between output and unemployment across regions, and interestingly, we find that this relationship differs among demographic groups within, and between, regions of the United States.