Regional Dynamics of Unemployment in Poland - A Convergence Approach
AbstractIn this paper we approach the regional unemployment dynamics in Poland. Using policy relevant NUTS4 level data for 1999 till 2006 we employ tools typically applied to income convergence analyses to inquire the patterns of unemployment distribution. We apply diverse analytical techniques to seek traces of convergence, including beta and sigma convergence as well as pass-through analysis. We demonstrate that it is highly stable over time, while only weak "convergence of clubs" is supported by the data and only for the high unemployment regions. Results suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment dierentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be slightly more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur predominantly for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to dierentiated divergence paths. Importantly, these tendencies prevail despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15385.
Date of creation: 2007
Date of revision:
regional unemployment rate dierentials; convergence analysis; Poland;
Other versions of this item:
- Joanna Tyrowicz & Piotr Wójcik, 2010. "Regional Dynamics of Unemployment in Poland A Convergence Approach," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 6, pages 149-173 AIEL - Associazione Italiana Economisti del Lavoro.
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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