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Why do Local Unemployment Rates in Poland Vary so Much?

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  • H Ingham
  • M Ingham
  • J Herbst
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    Abstract

    Unemployment continues to bedevil Poland, albeit with striking sub-national differences, which this paper seeks to explain using random effects error component two-stage estimation for the country's NUTS 4 level powiats. Given the economy's peculiar configuration under communism, with its large private agricultural sector, emphasis is placed on rural-urban differences. While less densely populated areas do suffer higher unemployment rates, the effect is moderated by hidden unemployment in farming. On the other hand, powiats that housed the ex-state farms suffer a negative long-term legacy. Other notable results include an evident positive impact of foreign capital on local labour market fortunes.

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    Bibliographic Info

    Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 594943.

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    Date of creation: 2008
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    Handle: RePEc:lan:wpaper:594943

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    3. Hartmut Lehmann & John O'Flaherty & Patrick P. Walsh, 1997. "Structural Adjustment and Regional Long Term Unemployment in Poland," Economics Policy Papers, Trinity College Dublin, Department of Economics 974, Trinity College Dublin, Department of Economics.
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    12. Marston, Stephen T, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 100(1), pages 57-79, February.
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    14. Walsh, Patrick Paul, 2003. "The cyclical pattern of regional unemployment flows in Poland," Economic Systems, Elsevier, Elsevier, vol. 27(2), pages 155-169, June.
    15. Nerlove,Marc, 2005. "Essays in Panel Data Econometrics," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521022460.
    16. Floro Ernesto Caroleo & Sergio Destefanis (ed.), 2006. "The European Labour Market. Regional Dimensions," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, AIEL - Associazione Italiana Economisti del Lavoro, number 01.
    17. Harald Badinger & Thomas Url, 2002. "Determinants of regional unemployment: some evidence from Austria," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(9), pages 977-988.
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