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Cambridge Journal of Economics Advance Access originally published online on September 17, 2007
Cambridge Journal of Economics 2007 31(6):845-861; doi:10.1093/cje/bem022
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© The Author 2007. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Structural change under New Labour

Ken Coutts, Andrew Glyn and Bob Rowthorn*

* Faculty of Economics, University of Cambridge, (Coutts and Rowthorn), Corpus Christi College, University of Oxford (Glyn). Paper prepared for the Workshop on Evaluating the Economics of New Labour, St Catherine's College, Cambridge, September 12, 2006

Address for correspondence: Ken Coutts, Faculty of Economics, Sidgwick Avenue, Cambridge CB3 9DD, UK; email: ken.coutts{at}econ.cam.ac.uk

The paper examines specific features of structural change in the UK since 1997, contrasting the decline in industrial jobs with the rise in a variety of service jobs. It examines the proximate causes of structural change, in particular whether the chronically slow growth of manufacturing output in the 1980s has persisted. The implications of this structural change are considered, particularly the effects on the balance of payments and regional employment patterns. The paper suggests that the main impact of government policies on regional employment may have been through the direct and multiplier effects of public expenditure.

Key Words: Structural change • Deindustrialisation • Balance of payments • Regional employment • New Labour economic policies

JEL classifications: E6, E65, F32, J6, R10

Manuscript received October 23, 2006; final version received April 25, 2007.


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