Economic resilience in Great Britain: the crisis impact and its determining factors for Local Authority Districts

Abstract

The 2008 recession has had a prolonged and varying effect both across and within countries. This paper studies the crisis impact on Great Britain's (GB) local authority districts (LADs) using the concept of economic resilience. This country is an interesting case study as the impact varied significantly among LADs. The focus is on employment and a new method is proposed for comparing pre and post-recession conditions in order to assess the recession impact. The influence of a number of determining factors is examined and the study finds a significant effect for initial economic conditions, human capital, age structure, urbanisation and geography. Policy makers need to take into account subnational differences in these factors in order to design and implement better targeted policies.