Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland

Tyrowicz, Joanna and Wojcik, Piotr (2009): Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland.

Abstract

This paper analyzes convergence of unemployment rates in Poland at NUTS4 level by testing nonlinear convergence, applying the modified KSS-CHLL for each pair of territorial units. The results suggest that actually the convergence is a rare phenomenon and occurs only in 1916 cases out of potential over 70 000 combinations. This paper inquires what systematic reasons contribute to this phenomenon. There are some circumstances under which unemployment convergence should be more awaited than in the others. These include sharing a higher level territorial authority, experiencing similar labour market hardship or sharing the same structural characteristics. For each of these three criteria we analyse the frequency of the dierential nonstationarity within groups (as evidence of convergence) and across groups (as evidence of "catching up").

• Item Type: MPRA Paper
• Language: English
• Keywords: nonlinear convergence, stochastic convergence, unemployment, transition, Poland
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics

References

Tyrowicz, J. and Wojcik, P.: 2009a, Regional Dynamics of Unemployment in Poland - A Convergence Approach, in F. Caroleo and F. Pastore (eds), A New Regional Geography of Europe?, Physica/Verlag.

Tyrowicz, J. and Wojcik, P.: 2009b, Unemployment Convergence in Transition, in E. Marelli and M. Signorelli (eds), Growth and Labour Market in Transition: A Comparative Perspective, Studies in Economic Transition, Palgrave/MacMillan.

Wasmer, E. and Zenou, Y.: 2006, Equilibrium Search Unemployment with Explicit Spatial Frictions, Labour Economics 13(2), 143{165.