Regional Unemployment and its Persistence in Transition Countries
AbstractWe look at the differences in regional unemployment rates in six major transition countries and their persistence over time. We analyse the role various adjustment mechanisms play. While movement out of the labour force seems to be one consequence in many regions with high relative unemployment, there are also signs of emerging wage flexibility. Employment creation, by contrast, has not picked up in regions of high unemployment. Labour mobility also remains very limited in size although it appears to respond to basic economic incentives. Policies addressing housing market imperfections and information asymmetries are necessary to increase worker mobility and to integrate better national labour markets.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1074.
Length: 27 pages
Date of creation: Mar 2004
Date of revision:
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Other versions of this item:
- Fabian Bornhorst & Simon Commander, 2006. "Regional unemployment and its persistence in transition countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(2), pages 269-288, 04.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- P2 - Economic Systems - - Socialist Systems and Transition Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-07 (All new papers)
- NEP-CIS-2004-03-28 (Confederation of Independent States)
- NEP-CWA-2004-03-28 (Central & Western Asia)
- NEP-EEC-2004-06-07 (European Economics)
- NEP-GEO-2004-03-28 (Economic Geography)
- NEP-LAB-2004-06-07 (Labour Economics)
- NEP-TRA-2004-03-28 (Transition Economics)
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