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Characteristics and Trends of Regional Labour Markets in Transition Economies:Empirical Evidence from Romania

Author

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  • Ella K爈lai
  • Iulia Traistaru

Abstract

Regional labour markets disparities have remained stable in Romania, as it is the case in Poland. In spite a huge output decline in the first years of transition, the process of adjustment to sectoral shifts has been slow. We find a negative relationship between regional unemployment rates and regional sectoral reallocation, but no correlation between these two variables. The most intense labour reallocation - both job creations and job destructions have taken place in regions with an industrial profile. Job destruction is predominant in agricultural regions. The estimated local unemployment elasticity of wages is negative suggesting the presence of a wage curve in Romania. Inter-regional migration flows are not correlated with regional unemployment rates while the availability of housing plays an important role in the decision to move across regions. While the agricultural regions are net senders, the industrial and diversified regions are net receivers. The absorption capabilities have declined in both industrial and diversified regions, faster in the industrial regions. It seems that the outflows of migrants from agricultural regions respond to the absorption capability of industrial rather than diversified regions.

Suggested Citation

  • Ella K爈lai & Iulia Traistaru, 1998. "Characteristics and Trends of Regional Labour Markets in Transition Economies:Empirical Evidence from Romania," LICOS Discussion Papers 7298, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:7298
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp72.pdf
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    Cited by:

    1. Iara, Anna & Traistaru, Iulia, 2004. "How flexible are wages in EU accession countries?," Labour Economics, Elsevier, vol. 11(4), pages 431-450, August.
    2. Napolitano, Oreste & Bonasia, Mariangela, 2010. "Determinants of different internal migration trends: the Italian experience," MPRA Paper 21734, University Library of Munich, Germany.
    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.

    More about this item

    Keywords

    transition economies; regional specialisation; regional unemployment; regional job reallocation; wage flexibility; regional labour mobility;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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