Characteristics and Trends of Regional Labour Markets in Transition Economies:Empirical Evidence from Romania
AbstractRegional labour markets disparities have remained stable in Romania, as it is the case in Poland. In spite a huge output decline in the first years of transition, the process of adjustment to sectoral shifts has been slow. We find a negative relationship between regional unemployment rates and regional sectoral reallocation, but no correlation between these two variables. The most intense labour reallocation - both job creations and job destructions have taken place in regions with an industrial profile. Job destruction is predominant in agricultural regions. The estimated local unemployment elasticity of wages is negative suggesting the presence of a wage curve in Romania. Inter-regional migration flows are not correlated with regional unemployment rates while the availability of housing plays an important role in the decision to move across regions. While the agricultural regions are net senders, the industrial and diversified regions are net receivers. The absorption capabilities have declined in both industrial and diversified regions, faster in the industrial regions. It seems that the outflows of migrants from agricultural regions respond to the absorption capability of industrial rather than diversified regions.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 7298.
Length: 35 pages
Date of creation: 01 Apr 1998
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transition economies; regional specialisation; regional unemployment; regional job reallocation; wage flexibility; regional labour mobility;
Find related papers by JEL classification:
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-10-20 (All new papers)
- NEP-GEO-2003-10-20 (Economic Geography)
- NEP-LAB-2003-10-20 (Labour Economics)
- NEP-TRA-2003-10-20 (Transition Economics)
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- Napolitano, Oreste & Bonasia, Mariangela, 2010. "Determinants of different internal migration trends: the Italian experience," MPRA Paper 21734, University Library of Munich, Germany.
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