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Regional Labour Market Differences in Serbia: Assessment and Policy Recommendations


  • Mihail Arandarenko
  • Milena Jovicic


Creating effective employment policy to combat rising unemployment and widening regional labour market differences is a major task facing Serbian economic policy makers. In this paper we argue that the best results would be achieved if a differentiated approach to regional labour markets is adopted, resulting in regionally specific employment policies. Our paper presents an original methodology which uses relevant statistical data from various sources (altogether 21 indicators) in order to create compound indices which serve as means of a comprehensive regional labour market classification. The main composite indices contain indicators standardised and grouped so that they reveal multifaceted features of the regions. The first classification distinguishes between indicators depicting regional economic situation and development prospects, and the second between those of general economic conditions, labour market situation and restructuring dynamics. Finally, we suggest a simple two-dimensional taxonomy of regions with regard to their labour market situation and prospects. While regions with positive composite indices of both situation and prospects in general do not require additional intervention, regions in other three quadrants are recommended specific policy mix of employment policy measures and active labour market programmes tailored according to their characteristics revealed by the analysis.

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  • Mihail Arandarenko & Milena Jovicic, 2007. "Regional Labour Market Differences in Serbia: Assessment and Policy Recommendations," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 299-317, September.
  • Handle: RePEc:liu:liucej:v:4:y:2007:i:2:p:299-317

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    References listed on IDEAS

    1. Peter Huber, 2005. "Inter-regional Mobility in the Accession Countries: A Comparison to EU-15 Member States," WIFO Working Papers 249, WIFO.
    2. Peter Huber & Andreas Worgotter, 1997. "Local Labour Market Dynamics in the Czech and Slovak Republics," William Davidson Institute Working Papers Series 121, William Davidson Institute at the University of Michigan.
    3. Huber, Peter, 2004. "Intra-national labor market adjustment in the candidate countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 248-264, June.
    4. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    5. Fidrmuc, J. & Horváth, J., 1998. "Stability of Monetary Unions : Lessons from the Break-Up of Czechoslovakia," Discussion Paper 1998-74, Tilburg University, Center for Economic Research.
    6. repec:iab:iabzaf:v:37:i:4:p:393-408 is not listed on IDEAS
    7. Jan Fidrmuc, 2005. "Labor Mobility during Transition: Evidence from the Czech Republic," William Davidson Institute Working Papers Series wp767, William Davidson Institute at the University of Michigan.
    8. Tondl, Gabriele & Vuksic, Goran, 2003. "What makes regions in Eastern Europe catching up? The role of foreign investment, human resources and geography," ZEI Working Papers B 12-2003, University of Bonn, ZEI - Center for European Integration Studies.
    9. Jan Fidrmuc & Peter Huber, 2007. "The willingness to migrate in the CEECs evidence from the Czech Republic," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 351-369, September.
    10. Traistaru, Iulia & Wolff, Guntram B., 2002. "Regional specialization and employment dynamics in transition countries," ZEI Working Papers B 18-2002, University of Bonn, ZEI - Center for European Integration Studies.
    11. Traistaru, Iulia & Nijkamp, Peter & Longhi, Simonetta, 2002. "Regional specialization and concentration of industrial activity in accession countries," ZEI Working Papers B 16-2002, University of Bonn, ZEI - Center for European Integration Studies.
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    More about this item


    Unemployment; Employment Policy; Regional Development; Transition; Assessment Methodology;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General


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