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Regional Unemployment and Industrial Restructuring in Poland

  • Andrew Newell
  • Francesco Pastore

This paper studies regional unemployment inequality in Poland. We find that regions experiencing greater change in industrial structure have higher unemployment rates. We also find that high-unemployment regions have higher inflow rates to unemployment rather than longer spells of unemployment. These findings suggest that regional unemployment varies importantly with job destruction in Poland. Econometric analysis of the determinants of employment to unemployment flows reinforces this impression. We use our estimates to assess the extent to which regional unemployment variation is due to economic restructuring. We show that this cannot be done unambiguously, and offer reasons why many previous attempts to separate out the effects of restructuring on unemployment have been unsuccessful.

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Article provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.

Volume (Year): 44 (2006)
Issue (Month): 3 (May)
Pages: 5-28

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Handle: RePEc:mes:eaeuec:v:44:y:2006:i:3:p:5-28
Contact details of provider: Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044

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  1. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-93, August.
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  9. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
  10. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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  12. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
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