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Active Labour Market Policies and Unemployment Convergence in Transition

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  • Joanna Tyrowicz

    (University of Warsaw, National Bank of Poland, and Rimini Centre for Economic Analysis)

  • Piotr Wojcik

    (University of Warsaw)

Abstract

In this paper we approach the issue of social cohesion across local labour markets in Poland. We analyse regional dynamics of unemployment rates and try to evaluate the impact of Active Labour Market Policies (ALMPs) in observed trends. Using data from 1999 till 2008 we employ tools typically applied to income convergence analyses to test the stability of unemployment distribution - both unconditionally and taking into account explanatory power of unemployment structure and ALMPs in Polish regions. Results give no support to the hypothesis of unconditional convergence understood both in terms of levels and in terms of dispersion. Among the highest unemployment regions, however, data seem to suggest "convergence of clubs". The analysis included also account- ing for potential impact of ALMPs, controlling for differentiated unemployment structure. We find no evidence that cohesion efforts contribute to more of the convergence or less of the divergence phenomena.

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Bibliographic Info

Article provided by Rimini Centre for Economic Analysis in its journal Review of Economic Analysis.

Volume (Year): 2 (2010)
Issue (Month): 1 (January)
Pages: 46-72

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Handle: RePEc:ren:journl:v:2:y:2010:i:1:p:46-72

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Related research

Keywords: regional unemployment rate differentials; convergence analysis; Poland;

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References

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  1. Angel de la Fuente, 2002. "Convergence across countries and regions: theory and empirics," UFAE and IAE Working Papers 555.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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  6. Falko Juessen & Christian Bayer, 2005. "Convergence in West German Regional Unemployment Rates," ERSA conference papers ersa05p410, European Regional Science Association.
  7. Marelli, Enrico, 2004. "Evolution of employment structures and regional specialisation in the EU," Economic Systems, Elsevier, vol. 28(1), pages 35-59, March.
  8. Enrique Lopez-Bazo & Tomas Del Barrio & Manuel Artis, 2005. "Geographical distribution of unemployment in Spain," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 305-318.
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  10. Katrencik, David & Tyrowicz, Joanna & Wojcik, Piotr, 2008. "Unemployment Convergence in Transition," MPRA Paper 15386, University Library of Munich, Germany.
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Cited by:
  1. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.
  2. Barbara Liberda & Marek Pęczkowski, 2007. "Households'� Saving Mobility in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 17.
  3. Ciżkowicz, Piotr & Kowalczuk, Michał & Rzońca, Andrzej, 2014. "Heterogeneous determinants of local unemployment in Poland," MPRA Paper 56858, University Library of Munich, Germany.

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