ABSTRACT
Britain’s regions have experienced differential economic performance for decades. Typically, the Southern regions have prospered relative to those further north. Hence the existence of a ‘North–South divide’ popularised in the media. When measured by the relative unemployment rate, this North–South divide was at its greatest during economic booms and smallest during recessions. In contrast, the absolute unemployment differential tended to rise in recessions and narrow during recovery. The persistence of these differentials across regions over time, however, assumed the status of stylised fact.
