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Why do Local Unemployment Rates in Poland Vary so Much?

  • H Ingham
  • M Ingham
  • J Herbst

Unemployment continues to bedevil Poland, albeit with striking sub-national differences, which this paper seeks to explain using random effects error component two-stage estimation for the country's NUTS 4 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.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 594943.

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Date of creation: 2008
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Handle: RePEc:lan:wpaper:594943
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  1. Huber, Peter, 2006. "Regional labor market developments in transition," Policy Research Working Paper Series 3896, The World Bank.
  2. Anna Maria Ferragina & Francesco Pastore, 2006. "Regional Unemployment in the OST Literature," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 3, pages 33-87 AIEL - Associazione Italiana Economisti del Lavoro.
  3. J. Paul Elhorst, 2003. "The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 709-748, December.
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  12. repec:cup:cbooks:9780521815345 is not listed on IDEAS
  13. Hartmut Lehmann & John O'Flaherty & Patrick P. Walsh, 1997. "Structural Adjustment and Regional Long Term Unemployment in Poland," Economics Policy Papers 974, Trinity College Dublin, Department of Economics.
  14. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
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