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Active Labour Market Policies and Unemployment Convergence in Transition

  • Joanna Tyrowicz

    (University of Warsaw, National Bank of Poland, and Rimini Centre for Economic Analysis)

  • Piotr Wojcik

    (University of Warsaw)

In this paper we approach the issue of social cohesion across local labour markets in Poland. We analyse regional dynamics of unemployment rates and try to evaluate the impact of Active Labour Market Policies (ALMPs) in observed trends. Using data from 1999 till 2008 we employ tools typically applied to income convergence analyses to test the stability of unemployment distribution - both unconditionally and taking into account explanatory power of unemployment structure and ALMPs in Polish regions. Results give no support to the hypothesis of unconditional convergence understood both in terms of levels and in terms of dispersion. Among the highest unemployment regions, however, data seem to suggest "convergence of clubs". The analysis included also account- ing for potential impact of ALMPs, controlling for differentiated unemployment structure. We find no evidence that cohesion efforts contribute to more of the convergence or less of the divergence phenomena.

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Article provided by Rimini Centre for Economic Analysis in its journal Review of Economic Analysis.

Volume (Year): 2 (2010)
Issue (Month): 1 (January)
Pages: 46-72

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Handle: RePEc:ren:journl:v:2:y:2010:i:1:p:46-72
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  12. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, 02.
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