Why do Local Unemployment Rates in Poland Vary so Much?

H Ingham, M Ingham and J Herbst
Authors registered in the RePEc Author Service: Hilary Ingham

No 594943, Working Papers from Lancaster University Management School, Economics Department

Abstract: Unemployment continues to bedevil Poland, albeit with striking sub-national differences, which this paper seeks to explain using random effects error component two-stage estimation for the country's NUTS 4 level powiats. Given the economy's peculiar configuration under communism, with its large private agricultural sector, emphasis is placed on rural-urban differences. While less densely populated areas do suffer higher unemployment rates, the effect is moderated by hidden unemployment in farming. On the other hand, powiats that housed the ex-state farms suffer a negative long-term legacy. Other notable results include an evident positive impact of foreign capital on local labour market fortunes.

Date: 2008
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