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Title:Regional Unemployment and its Persistence in Transition Countries PDF Logo
Authors:Bornhorst, Fabian
Commander, Simon
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1074
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.
Subjects:transition
regional unemployment
mobility
JEL:P2
J61
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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