Despite many years of research into the determinants of labour-force participation there is still a large degree of ignorance as to the impact of national fluctuations upon local labour-market supply. In the context of the recent recession, the effects of fluctuations in national money-wage rates and unemployment are related to variations in regional labour supply. A tentative model is presented and problems of testing economic relationships over time are discussed. With the Canadian case as an example, the model is then analysed and the results discussed.
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