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Regional Unemployment and Industrial Restructuring in Poland

Andrew Newell and Francesco Pastore

Eastern European Economics, 2006, vol. 44, issue 3, 5-28

Abstract: This paper studies regional unemployment inequality in Poland. We find that regions experiencing greater change in industrial structure have higher unemployment rates. We also find that high-unemployment regions have higher inflow rates to unemployment rather than longer spells of unemployment. These findings suggest that regional unemployment varies importantly with job destruction in Poland. Econometric analysis of the determinants of employment to unemployment flows reinforces this impression. We use our estimates to assess the extent to which regional unemployment variation is due to economic restructuring. We show that this cannot be done unambiguously, and offer reasons why many previous attempts to separate out the effects of restructuring on unemployment have been unsuccessful.

Date: 2006
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Working Paper: Regional Unemployment and Industrial Restructuring in Poland (2000) Downloads
Working Paper: Regional Unemployment and Industrial Restructuring in Poland (2000) Downloads
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