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Regional Unemployment and Industrial Restructuring in Poland

Author

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  • Andrew Newell
  • Francesco Pastore

Abstract

This paper studies regional unemployment inequality in Poland. We find that regions experiencing greater change in industrial structure have higher unemployment rates. We also find that high-unemployment regions have higher inflow rates to unemployment rather than longer spells of unemployment. These findings suggest that regional unemployment varies importantly with job destruction in Poland. Econometric analysis of the determinants of employment to unemployment flows reinforces this impression. We use our estimates to assess the extent to which regional unemployment variation is due to economic restructuring. We show that this cannot be done unambiguously, and offer reasons why many previous attempts to separate out the effects of restructuring on unemployment have been unsuccessful.

Suggested Citation

  • Andrew Newell & Francesco Pastore, 2006. "Regional Unemployment and Industrial Restructuring in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 44(3), pages 5-28, May.
    • Handle: RePEc:mes:eaeuec:v:44:y:2006:i:3:p:5-28
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    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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