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Quantity adjustments in the regional labour markets of EU candidate countries

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  • Vera Gács
  • Peter Huber

Abstract

. The article comprises an analysis of the adjustment of regional labour markets of former (and present) EU candidate countries to asymmetric shocks. As in EU member states, a substantial part of the adjustment to changes in employment in candidate countries is carried by participation decisions, and migration plays a small role. Candidate countries, however, have experienced larger region‐specific shocks to labour demand than member states, and these shocks lead to higher long‐run changes in employment. Furthermore, adjustment mechanisms partly explain high regional unemployment. High unemployment regions exhibit a lower capability to absorb region‐specific shocks through mechanisms other than higher unemployment.

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  • Vera Gács & Peter Huber, 2005. "Quantity adjustments in the regional labour markets of EU candidate countries," Papers in Regional Science, Wiley Blackwell, vol. 84(4), pages 553-574, November.
    • Handle: RePEc:bla:presci:v:84:y:2005:i:4:p:553-574
    DOI: 10.1111/j.1435-5957.2005.00044.x
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    1. Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," NBER Working Papers 7564, National Bureau of Economic Research, Inc.
    2. Guy Debelle & James Vickery, 1999. "Labour Market Adjustment: Evidence on Interstate LabourMobility," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(3), pages 249-263, September.
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    Cited by:

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    2. Enrico Marelli & Roberto Patuelli & Marcello Signorelli, 2012. "Regional unemployment in the EU before and after the global crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 155-175, January.
    3. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia.
    4. Cristiano Perugini & Marcello Signorelli, 2010. "Youth labour market performance in European regions," Economic Change and Restructuring, Springer, vol. 43(2), pages 151-185, May.
    5. Darja Borsic & 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.
    6. 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.
    7. Peter Huber, 2009. "Regional Labour Market Disparities in an Enlarged European Union," Palgrave Macmillan Books, in: Paul Blokker & Bruno Dallago (ed.), Regional Diversity and Local Development in the New Member States, chapter 5, pages 122-165, Palgrave Macmillan.
    8. Peter Huber, 2018. "The Role of Migration as Adjustment Mechanism in the Crisis and EMU," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(6), pages 1497-1508.
    9. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications - Books, The World Bank Group, number 7408, December.
    10. Shu-hen Chiang, 2009. "The effects of industrial diversification on regional unemployment in Taiwan: is the portfolio theory applicable?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(4), pages 947-962, December.
    11. Bönisch, Peter & Schneider, Lutz, 2010. "Why are East Germans not More Mobile? Analyzing the Impact of Social Ties on Regional Migration," IWH Discussion Papers 16/2010, Halle Institute for Economic Research (IWH).
    12. Vladimir Gligorov & Anna Iara & Michael Landesmann & Robert Stehrer & Hermine Vidovic, 2008. "Western Balkan Countries: Adjustment Capacity to External Shocks, with a Focus on Labour Markets," wiiw Research Reports 352, The Vienna Institute for International Economic Studies, wiiw.
    13. Peter Bönisch & Lutz Schneider, 2010. "Why Are East Germans Not More Mobile?: Analyzing the Impact of Local Networks on Migration Intentions," SOEPpapers on Multidisciplinary Panel Data Research 334, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Nadia Granato & Anette Haas & Silke Hamann & Annekatrin Niebuhr, 2015. "The Impact Of Skill‐Specific Migration On Regional Unemployment Disparities In Germany," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 513-539, September.
    15. Juessen, Falko & Linnemann, Ludger, 2012. "Identifying Regional Labor Demand Shocks Using Sign Restrictions," IZA Discussion Papers 6767, Institute of Labor Economics (IZA).
    16. Solmaria Halleck Vega & J. Paul Elhorst, 2017. "Regional labour force participation across the European Union: a time–space recursive modelling approach with endogenous regressors," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(2-3), pages 138-160, July.
    17. Smets, Frank & Beyer, Robert C. M., 2015. "Labour market adjustments in Europe and the US: How different?," Working Paper Series 1767, European Central Bank.
    18. Pierella Paci & Erwin R. Tiongson & Mateusz Walewski & Jacek Liwinski & Maria M. Stoilkova, 2007. "Internal Labor Mobility in Central Europe and the Baltic Region," World Bank Publications - Books, The World Bank Group, number 6598, December.

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