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Regional Unemployment and its Persistence in Transition Countries

Fabian Bornhorst () and Simon Commander ()
Additional contact information
Simon Commander: IE Business School, Altura Partners

No 1074, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 (search for similar items in EconPapers)
JEL-codes: J61 P2 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2004-03
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-eec, nep-geo, nep-lab and nep-tra
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Journal Article: Regional unemployment and its persistence in transition countries (2006) Downloads
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