GIS and microsimulation for local labour market analysis

Abstract

This paper outlines the findings of ongoing research on ways of employing and combining geographical information systems (GIS) and microsimulation methodologies for the evaluation and analysis of local labour market problems and policies. First, it is shown how data sets from different sources are integrated to create an urban labour market GIS. In the context of this information system, ways of mapping thematically the local labour market demand and supply are presented. In addition, travel-to-work flows are mapped and it is demonstrated how this data can be used to build local labour market Spatial Interaction Models. Further, it is shown how GIS can be combined with microsimulation techniques to highlight urban problems and enhance the analysis and evaluation of potential social and employment policies. In particular, it is shown how GIS and microsimulation can be used as tools in order to analyse a region's economy and labour market and to estimate the degree of labour market segmentation and socio-economic dualism within an urban system. Also, it is outlined how what-if spatial policy analysis of local labour markets can be performed (i.e. simulating new policy initiatives, firm closures, changes in benefit policies and performing regional multiplier analysis). Finally, the paper presents outputs from SimLeeds, which is a spatial microsimulation model for the Leeds labour market, and explores the potential of GIS combined with microsimulation modelling to create a new framework for the formulation, analysis and evaluation of socio-economic policies at the individual or household level.