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Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland

  • Tyrowicz, Joanna
  • Wojcik, Piotr

This paper analyzes convergence of unemployment rates in Poland at NUTS4 level by testing nonlinear convergence, applying the modified KSS-CHLL for each pair of territorial units. The results suggest that actually the convergence is a rare phenomenon and occurs only in 1916 cases out of potential over 70 000 combinations. This paper inquires what systematic reasons contribute to this phenomenon. There are some circumstances under which unemployment convergence should be more awaited than in the others. These include sharing a higher level territorial authority, experiencing similar labour market hardship or sharing the same structural characteristics. For each of these three criteria we analyse the frequency of the dierential nonstationarity within groups (as evidence of convergence) and across groups (as evidence of "catching up").

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15384.

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Date of creation: 2009
Date of revision:
Handle: RePEc:pra:mprapa:15384
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  19. Fábio Augusto Reis Gomes & Cleomar Gomes da Silva, 2006. "Hysteresis Vs. Nairu And Convergence Vs. Divergence: The Behavior Of Regional Unemployment Rates In Brazil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 161, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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  23. Joanna Tyrowicz & Piotr Wójcik, 2010. "Regional Dynamics of Unemployment in Poland A Convergence Approach," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 6, pages 149-173 AIEL - Associazione Italiana Economisti del Lavoro.
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