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Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland

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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

This paper analyzes convergence of unemployment rates in Poland at the local level by testing nonlinear convergence, applying the modified KSS-CHLL test for each pair of territorial units. The results suggest that actually the convergence is a rare phenomenon and occurs only in 3 227 cases out of potential over 70 000 combinations. This paper inquires which systematic reasons contribute to this phenomenon. There are some circumstances under which unemployment convergence should be more awaited than in the others. These include sharing a higher level territorial authority, expe- riencing similar labour market hardship or sharing the same structural characteristics. For each of these three criteria we analyse the frequency of the differential non-stationarity within groups as evidence of convergence or Òcatching upÓ.

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Bibliographic Info

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

Volume (Year): 3 (2011)
Issue (Month): 1 (July)
Pages: 59-79

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Handle: RePEc:ren:journl:v:3:y:2011:i:1:p:59-79

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Keywords: nonlinear stochastic convergence; regional unemployment; Poland;

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Citations

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Cited by:
  1. Jeruzalski, Tomasz & Tyrowicz, Joanna, 2009. "(In)Efficiency of Matching - The Case of A Post-transition Economy," MPRA Paper 16598, University Library of Munich, Germany.
  2. Roberto Patuelli & Norbert Schanne & Daniel A. Griffith & Peter Nijkamp, 2012. "Persistence Of Regional Unemployment: Application Of A Spatial Filtering Approach To Local Labor Markets In Germany," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 300-323, 05.
  3. Ciżkowicz, Piotr & Kowalczuk, Michał & Rzońca, Andrzej, 2014. "Heterogeneous determinants of local unemployment in Poland," MPRA Paper 56858, University Library of Munich, Germany.
  4. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
  5. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
  6. Werner, Daniel, 2013. "New insights into the development of regional unemployment disparities," IAB Discussion Paper 201311, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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