The article comprises an analysis of the adjustment of regional labour markets of former (and present) EU candidate countries to asymmetric shocks. As in EU member states, a substantial part of the adjustment to changes in employment in candidate countries is carried by participation decisions, and migration plays a small role. Candidate countries, however, have experienced larger region-specific shocks to labour demand than member states, and these shocks lead to higher long-run changes in employment. Furthermore, adjustment mechanisms partly explain high regional unemployment. High unemployment regions exhibit a lower capability to absorb region-specific shocks through mechanisms other than higher unemployment. Copyright RSAI 2005.
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