Regional Unemployment and its Persistence in Transition Countries

20 Pages Posted: 3 Apr 2019

See all articles by Simon John Commander

Simon John Commander

London Business School; IZA Institute of Labor Economics

Date Written: April 2006

Abstract

We look at the differences in regional unemployment rates in six major transition countries and their persistence over time. We analyse the role various adjustment mechanisms play. While movement out of the labour force seems to be one consequence in many regions with high relative unemployment, there are also signs of emerging wage flexibility. Employment creation, by contrast, has not picked up in regions of high unemployment. Labour mobility also remains very limited in size although it appears to respond to basic economic incentives. Policies addressing housing market imperfections and information asymmetries are necessary to increase worker mobility and to integrate better national labour markets.

Keywords: transition, regional unemployment, mobility

JEL Classification: J61, P2

Suggested Citation

Commander, Simon John, Regional Unemployment and its Persistence in Transition Countries (April 2006). Economics of Transition, Vol. 14, Issue 2, pp. 269-288, 2006. Available at SSRN: https://ssrn.com/abstract=3364511 or http://dx.doi.org/10.1111/j.1468-0351.2006.00254.x

Simon John Commander (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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