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Regional Unemployment and its Persistence in Transition Countries

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Author Info
Bornhorst, Fabian (European University Institute)
Commander, Simon () (London Business School, EBRD and IZA Bonn)

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Abstract

We 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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1074.

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Length: 27 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1074

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Related research
Keywords: transition; regional unemployment; mobility;

Other versions of this item:

Find related papers by JEL classification:
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:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Yuri Andrienko & Sergei Guriev, 2003. "Determinants of Interregional Mobility in Russia: Evidence from Panel Data," William Davidson Institute Working Papers Series 551, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  3. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Commander, Simon & Yemtsov, Ruslan, 1995. "Russian unemployment : its magnitude, characteristics, and regional dimensions," Policy Research Working Paper Series 1426, The World Bank. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. McArthur, David & Thorsen, Inge & Ubøe, Jan, 2008. "An agent-based computational approach to explaining persistent spatial unemployment disparities," Discussion Papers 2008/17, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
  2. Giulia Faggio, 2007. "Job Destruction, Job Creation and Unemployment in Transition Countries: What Can We Learn?," CEP Discussion Papers dp0798, Centre for Economic Performance, LSE. [Downloadable!]
  3. Marcello Signorelli & Enrico Marelli, 2007. "Institutional change, regional features and aggregate performance in eight EU’s transition countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 37/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica. [Downloadable!]
  4. Eva Aguayo & Pilar Exposito & Emilia Vazquez, 2006. "Potential Tourism Market in Transition Countries: A Regional Analysis," ERSA conference papers ersa06p743, European Regional Science Association. [Downloadable!]
  5. Jan Fidrmuc & Peter Huber, 2007. "Introduction," Empirica, Springer, vol. 34(4), pages 281-286, September. [Downloadable!] (restricted)
  6. Rutkowski, Jan, 2006. "Labor market developments during economic transition," Policy Research Working Paper Series 3894, The World Bank. [Downloadable!]
  7. Stepán Jurajda & Katherine Terrell, 2007. "Regional Unemployment and Human Capital in Transition Economies," IZA Discussion Papers 3176, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Antonio Spilimbergo & Goohoon Kwon, 2005. "Russia's Regions: Income Volatility, Labor Mobility and Fiscal Policy," IMF Working Papers 05/185, International Monetary Fund. [Downloadable!]
    Other versions:
  9. Darja Boršiè & Alenka Kavkler, 2009. "Duration of Regional Unemployment Spells in Slovenia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(2), pages 123-146. [Downloadable!]
  10. Anna Maria Ferragina & Francesco Pastore, 2005. "Mind the Gap: Unemployment in the New EU Regions," IZA Discussion Papers 1565, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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