Industrial structure and unemployment in regional labor markets

Even during periods of moderated national joblessness, certain regions face stubbornly high unemployment. "Rust Belt" areas are often particularly affected and raise the question of whether such labor markets may not clear even in equilibrium. This article examines evidence from a panel data set of West Virginia counties, along with ease-study surveys. The combined findings help provide a better understanding of persistent local unemployment, which appears to be due to nonclearing labor markets.