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Local unemployment in Poland: rural-urban contrasts

Author

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  • Hilary Ingham
  • Mike Ingham
  • Jan Herbst

Abstract

Unemployment continues to bedevil Poland, albeit with striking sub-national differences, which this article seeks to explain using random effects error component two-stage estimation for the country's NUTS 4 (nomenclature des unites territoriales statistiques) level powiats. Given the economy's peculiar configuration under communism, with its large private agricultural sector, emphasis is placed on rural-urban differences. While less densely populated areas do suffer higher unemployment rates, the effect is moderated by hidden unemployment in farming. On the other hand, powiats that housed the ex-state farms suffer a negative long-term legacy. Other notable results include an evident positive impact of foreign capital on local labour market fortunes.

Suggested Citation

  • Hilary Ingham & Mike Ingham & Jan Herbst, 2011. "Local unemployment in Poland: rural-urban contrasts," Applied Economics, Taylor & Francis Journals, vol. 43(10), pages 1175-1186.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1175-1186
    DOI: 10.1080/00036840802600293
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    References listed on IDEAS

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    1. Andrew Newell, 2006. "Skill Mismatch and Regional Unemployment in Poland," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 9, pages 187-202, AIEL - Associazione Italiana Economisti del Lavoro.
    2. Andrew Newell, 2006. "Skill Mismatch and Regional Unemployment in Poland," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market, chapter 8, pages 187-202, Springer.
    3. Nerlove,Marc, 2005. "Essays in Panel Data Econometrics," Cambridge Books, Cambridge University Press, number 9780521022460.
    4. Hartmut Lehmann & Patrick Paul Walsh, 1999. "Gradual restructuring and Structural Unemployment in Poland. A Legacy of Central Planning," LICOS Discussion Papers 7899, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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