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Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data

  • Francesco Pastore


    (Seconda Università di Napoli, Institute for the Study of Labour)

  • Joanna Tyrowicz


    (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland; Rimini Centre for Economic Analysis)

This paper uses the insights from the Optimal Speed of Transition literature to inquire the causes of relatively higher unemployment rate in a transition context. We study whether local variation in unemployment rates is related to labor turnover. In addition, the paper aims to assess the relative impact of inflow and outflow from unemployment on the dynamics of the local unemployment rate. The empirical analysis is based on a newly available unique dataset from the employment registry of a transition economy (Poland), encompassing nine years of monthly data (from 2000 to 2008) at a county (poviat) level. We find that turnover, as well as inflows and outflows separately, are ceteris paribus positively related to the unemployment level. This general conclusion is robust to stratification, model specification as well as spatial effects. We find that elasticity is larger in the case of the inflow rate than for the outflow rate. Finally, we demonstrate that these effects are stronger in low unemployment regions.

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Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2013-18.

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Length: 45 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:war:wpaper:2013-18
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