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Regional labor market developments in transition

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  • Huber, Peter

Abstract

The author analyzes regional labor market disparities in transition by presenting some data and summarizing existing literature. He finds that large and persistent regional labor market disparities developed in virtually all transition countries and that there is some evidence of polarization. Differences in starting conditions and market access seem to be the major reasons for regional divergence in transition. Furthermore, regional wages are only slightly more flexible than in many European Union labor markets, interregional migration is low, and capital seems to move toward high wage and low unemployment urban centers rather than to the most backward regions. Policy should thus take a long-run perspective on the existing regional disparities, focus on removing barriers to mobility, review existing institutions for implementing regional policy, and aim at a close coordination of regional and labor market policy instruments.

Suggested Citation

  • Huber, Peter, 2006. "Regional labor market developments in transition," Policy Research Working Paper Series 3896, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3896
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    References listed on IDEAS

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    1. Károly Fazekas, 1996. "Types of Microregions, Dispersion of Unemployment, and Local Employment Development in Hungary," Eastern European Economics, Taylor & Francis Journals, vol. 34(3), pages 3-48, June.
    2. Peter Egger & Peter Huber & Michael Pfaffermayr, 2005. "A note on export openness and regional wage disparity in Central and Eastern Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(1), pages 63-71, March.
    3. Bernard Funck & Lodovico Pizzati, 2002. "Labor, Employment, and Social Policies in the EU Enlargement Process : Changing Perspectives and Policy Options," World Bank Publications, The World Bank, number 15235.
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    Citations

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    Cited by:

    1. Balla, Katalin & Köllo, János & Simonovits, András, 2008. "Transition with heterogeneous labor," Structural Change and Economic Dynamics, Elsevier, vol. 19(3), pages 203-220, September.
    2. Köllő, János & Simonovits, András & Balla, Katalin, 2006. "Transzformációs sokk heterogén munkaerőpiacon
      [Transformation shock on a heterogeneous labour market]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 485-508.
    3. Ioan Ianos & Irina Saghin & Gabriel Pascariu, 2013. "Regions and the Territorial Cohesion," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 415-429, August.
    4. Mihails Hazans, 2007. "Looking for the workforce: the elderly, discouraged workers, minorities, and students in the Baltic labour markets," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 319-349, September.
    5. Jan Fidrmuc & Peter Huber, 2007. "Introduction," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 281-286, September.
    6. Peter Huber & Iulia Traistaru, 2003. "Regional Growth and Adjustment of the Labour Market in the CEE Countries," WIFO Monatsberichte (monthly reports), WIFO, vol. 76(11), pages 841-850, November.
    7. Christopher Candelaria & Mary C. Daly & Galina Hale, 2009. "Beyond Kuznets: persistent regional inequality in China," Working Paper Series 2009-07, Federal Reserve Bank of San Francisco.
    8. Olgica Bošković & Nikola Njegovan, 2012. "Gender Inequality In The Labour Market In Serbia," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(192), pages 113-136, January –.
    9. Vassilis Monastiriotis, 2008. "Quo Vadis Southeast Europe? EU Accession, Regional Cooperation and the need for a Balkan Development Strategy," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 10, Hellenic Observatory, LSE.
    10. H Ingham & M Ingham & J Herbst, 2008. "Why do Local Unemployment Rates in Poland Vary so Much?," Working Papers 594943, Lancaster University Management School, Economics Department.
    11. Christopher Candelaria & Mary Daly & Galina Hale, 2015. "Persistence of Regional Wage Differences in China," Pacific Economic Review, Wiley Blackwell, vol. 20(3), pages 365-387, August.
    12. Kate Bishop & Tomasz Mickiewicz, 2003. "While Labour Hoarding May Be Over, Insiders??? Control Is Not. Determinants Of Employment Growth In Polish Large Firms, 1996-2001," William Davidson Institute Working Papers Series 2003-593, William Davidson Institute at the University of Michigan.
    13. Thomas Gruber, 2004. "Employment and Labor Market Flexibility in the New EU Member States," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 96-121.

    More about this item

    Keywords

    Labor Markets; Economic Theory&Research; Markets and Market Access; Youth and Governance; Country Strategy&Performance;

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