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Active Labour Market Policies and Unemployment Convergence in Transition

Author

Listed:
  • Joanna Tyrowicz

    (University of Warsaw, National Bank of Poland, and Rimini Centre for Economic Analysis)

  • Piotr Wojcik

    (University of Warsaw)

Abstract
In this paper we approach the issue of social cohesion across local labour markets in Poland. We analyse regional dynamics of unemployment rates and try to evaluate the impact of Active Labour Market Policies (ALMPs) in observed trends. Using data from 1999 till 2008 we employ tools typically applied to income convergence analyses to test the stability of unemployment distribution - both unconditionally and taking into account explanatory power of unemployment structure and ALMPs in Polish regions. Results give no support to the hypothesis of unconditional convergence understood both in terms of levels and in terms of dispersion. Among the highest unemployment regions, however, data seem to suggest "convergence of clubs". The analysis included also account- ing for potential impact of ALMPs, controlling for differentiated unemployment structure. We find no evidence that cohesion efforts contribute to more of the convergence or less of the divergence phenomena.

Suggested Citation

  • Joanna Tyrowicz & Piotr Wojcik, 2010. "Active Labour Market Policies and Unemployment Convergence in Transition," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 2(1), pages 46-72, January.
    • Handle: RePEc:ren:journl:v:2:y:2010:i:1:p:46-72
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    Cited by:

    1. V. A. Rusanovskiy & V. A. Markov, 2016. "Influence of the spatial factor on the regional differentiation of unemployment in the Russian economy," Studies on Russian Economic Development, Springer, vol. 27(5), pages 593-604, September.
    2. Piotr Ciżkowicz & Michał Kowalczuk & Andrzej Rzońca, 2016. "Heterogeneous determinants of local unemployment in Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 28(4), pages 487-519, October.
    3. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.
    4. Marek Pęczkowski & Barbara Liberda, 2013. "Households’ saving mobility in Poland," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 14(2), pages 273-286, June.

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    More about this item

    Keywords

    regional unemployment rate differentials; convergence analysis; Poland;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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