Regional unemployment and human capital in transition economies 1
dc.contributor.author | Jurajda, Štěpán | en_US |
dc.contributor.author | Terrell, Katherine | en_US |
dc.date.accessioned | 2010-06-01T19:28:07Z | |
dc.date.available | 2010-06-01T19:28:07Z | |
dc.date.issued | 2009-04 | en_US |
dc.identifier.citation | Jurajda, ŠtěpÁn; Terrell, Katherine (2009). "Regional unemployment and human capital in transition economies 1 ." Economics of Transition 17(2): 241-274. <http://hdl.handle.net/2027.42/72608> | en_US |
dc.identifier.issn | 0967-0750 | en_US |
dc.identifier.issn | 1468-0351 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/72608 | |
dc.description.abstract | Differences in regional unemployment in post-communist economies are large and persistent. We show that within-country regional variation in inherited human capital in four such economies explains the bulk of regional variation in unemployment; we explore potential explanations. Our evidence suggests that internal skill-biased migration and the flow of foreign direct investment are not working as adjustment mechanisms but rather help explain the lack of convergence in regional unemployment rates. Although this capital and labour mobility pattern is consistent with the presence of regional skill spillovers, we find little support for this hypothesis. Instead, the observed migration pattern appears to arise from different skill-specific adjustments to regional shocks brought about in part by labour-market institutions such as guaranteed welfare income. | en_US |
dc.format.extent | 375656 bytes | |
dc.format.extent | 3109 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.publisher | Blackwell Publishing Ltd | en_US |
dc.rights | Journal compilation © 2009 The European Bank for Reconstruction and Development | en_US |
dc.subject.other | E24 | en_US |
dc.subject.other | J0 | en_US |
dc.subject.other | J61 | en_US |
dc.subject.other | Unemployment | en_US |
dc.subject.other | Human Capital | en_US |
dc.subject.other | Regional Labour Markets | en_US |
dc.subject.other | Transition Economies | en_US |
dc.subject.other | Labour Mobility | en_US |
dc.subject.other | Complementarities | en_US |
dc.subject.other | Spillovers | en_US |
dc.subject.other | Czech Republic | en_US |
dc.subject.other | Bulgaria | en_US |
dc.subject.other | Hungary | en_US |
dc.subject.other | Ukraine | en_US |
dc.title | Regional unemployment and human capital in transition economies 1 | en_US |
dc.type | Article | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.peerreviewed | Peer Reviewed | en_US |
dc.contributor.affiliationum | ** Ford School of Public Policy and Ross School of Business, University of Michigan, Ann Arbor, MI 48109, USA. E-mail: terrell@umich.edu | en_US |
dc.contributor.affiliationother | * A joint workplace of the Center for Economic Research and Graduate Education, Charles University, Prague, and the Economics Institute of the Academy of Sciences of the Czech Republic. CERGE-EI, Charles University Prague and Academy of Sciences of the Czech Republic, Politickych veznu 7, Prague 11121, Czech Republic. E-mail: stepan.jurajda@cerge-ei.cz | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/72608/1/j.1468-0351.2009.00351.x.pdf | |
dc.identifier.doi | 10.1111/j.1468-0351.2009.00351.x | en_US |
dc.identifier.source | Economics of Transition | en_US |
dc.identifier.citedreference | Acemoglu, D. ( 2003 ). ‘Patterns of skill premia’, Review of Economic Studies, 70, pp. 199 – 230. | en_US |
dc.identifier.citedreference | Acemoglu, D. and Zilibotti, F. ( 2004 ). ‘Productivity differences’, Quarterly Journal of Economics, 115 ( 3 ), pp. 563 – 606. | en_US |
dc.identifier.citedreference | Berry, C. R., and Glaeser, E. L. ( 2005 ). ‘The divergence of human capital levels across cities ’, NBER Working Paper No. 11617, Cambridge, MA: NBER. http://www.nber.org/papers/. | en_US |
dc.identifier.citedreference | Bevan, A. A. and Estrin, S. ( 2004 ). ‘The determinants of foreign direct investment into European transition economies’, Journal of Comparative Economics, 32 ( 4 ), pp. 775 – 787. | en_US |
dc.identifier.citedreference | Boeri, T. and BrÜcker, H. ( 2001 ). ‘Eastern enlargement and EU-labour markets: Perceptions, challenges and opportunities’, World Economics, 2 ( 1 ), pp. 49 – 68. | en_US |
dc.identifier.citedreference | Boeri, T. and Terrell, K. ( 2002 ). ‘Institutional determinants of labor reallocation in transition’, Journal of Economic Perspectives, 16 ( 1 ), pp. 51 – 76. | en_US |
dc.identifier.citedreference | Bornhorst, F. and Commander, S. ( 2006 ). ‘Regional unemployment and its persistence in transition countries’, Economics of Transition, 14 ( 2 ), pp. 269 – 288. | en_US |
dc.identifier.citedreference | Canova, F. ( 2001 ). ‘Are EU policies fostering growth and reducing regional inequalities?’ Els Opuscles del CREI, no. 8., Universitat Pompeu Fabra. | en_US |
dc.identifier.citedreference | Checchi, D., De Simone, G. and Faini, R. ( 2007 ). ‘Skilled migration, FDI and human capital investment’, IZA Discussion Paper No. 2795, Bonn: IZA. http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/publications/papers&topSelect=publications&subSelect=papers | en_US |
dc.identifier.citedreference | Cieslik, A. ( 2005 ). ‘Regional characteristics and the location of foreign firms within Poland’, Applied Economics, 37, pp. 863 – 874. | en_US |
dc.identifier.citedreference | Commander, S., and KÖllő, J. ( 2004 ). ‘The changing demand for skills: Evidence from the transition’, IZA Discussion Paper No. 1073, Bonn: IZA. http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/publications/papers&topSelect=publications&subSelect=papers. | en_US |
dc.identifier.citedreference | Devillanova, C. ( 2004 ). ‘Interregional migration and labor market imbalances’, Journal of Population Economics, 17, pp. 229 – 247. | en_US |
dc.identifier.citedreference | Fidrmuc, J. ( 2004 ). ‘Migration and regional adjustment to asymmetric shocks in transition economies’, Journal of Comparative Economics, 32, pp. 230 – 247. | en_US |
dc.identifier.citedreference | Fujita, M., Krugman, P. R. and Venables, A. J. ( 1999 ). The Spatial Economy: Cities, Regions, and International Trade, Cambridge, MA: MIT Press. | en_US |
dc.identifier.citedreference | Ganguli, I. and Terrell, K. ( 2006 ). ‘Institutions, markets and men's and women's wage inequality: Evidence from Ukraine’, Journal of Comparative Economics, 34 ( 2 ), pp. 200 – 227. | en_US |
dc.identifier.citedreference | Giannetti, M. ( 2002 ). ‘The effects of integration on regional disparities: Convergence, divergence, or both?’ European Economic Review, 46, pp. 539 – 567. | en_US |
dc.identifier.citedreference | Giannetti, M. ( 2003 ). ‘On the mechanics of migration decisions: Skill complementarities and endogenous price differentials’, Journal of Development Economics, 71, pp. 329 – 349. | en_US |
dc.identifier.citedreference | Glaeser, E. L., Scheinkman, J. A. and Shleifer, A. ( 1995 ). ‘Economic growth in a cross-section of cities’, Journal of Monetary Economics, 36, pp. 117 – 143. | en_US |
dc.identifier.citedreference | Huber, P. ( 2004 ). ‘Intra-national labor market adjustment in the candidate countries’, Journal of Comparative Economics, 32 ( 2 ), pp. 248 – 264. | en_US |
dc.identifier.citedreference | Jolliffe, D. ( 2002 ). ‘The gender wage gap in Bulgaria: A semi-parametric estimation of discrimination’, Journal of Comparative Economics, 30 ( 2 ), pp. 276 – 295. | en_US |
dc.identifier.citedreference | Jolliffe, D. and Campos, N. ( 2005 ). ‘Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986–1998’, Labour Economics, 12 ( 1 ), pp. 1 – 22. | en_US |
dc.identifier.citedreference | Jurajda, S. ( 2003 ). ‘Gender wage gap and segregation in enterprises and the public sector in late transition countries’, Journal of Comparative Economics, 31 ( 2 ), pp. 199 – 222. | en_US |
dc.identifier.citedreference | Jurajda, S. ( 2004 ). ‘Are there increasing returns to local concentration of skills? Evidence from transition’, mimeo, Prague: CERGE-EI. | en_US |
dc.identifier.citedreference | KÉzdi, G. ( 2003 ). ‘Imported technology and increasing demand for skill: The case of Hungary’, mimeo, Prague: Central European University. | en_US |
dc.identifier.citedreference | KÖllő, J. ( 2006 ). ‘Skill endowments in the CEEs – The legacy of socialism and implications for unskilled employment’ mimeo, Institute of Economics, Budapest. | en_US |
dc.identifier.citedreference | Kwon, G. and Spilimbergo, A. ( 2005 ). ‘Russia's regions: Income volatility, labor mobility, and fiscal policy’, IMF Working Paper No. 185, Washington, DC: IMF. http://www.imf.org/external/pubind.htm. | en_US |
dc.identifier.citedreference | Lange, F. and Topel, R. ( 2006 ). ‘The social returns to education and human capital’, Ch. 8 in Hanushek, E. and Welch, F. (eds), Handbook of the Economics of Education, North-Holland: Elsevier. | en_US |
dc.identifier.citedreference | Lucas, R. E. ( 1988 ). ‘On the mechanics of economic development’, Journal of Monetary Economics, 22, pp. 3 – 41. | en_US |
dc.identifier.citedreference | Mauro, P. and Spilimbergo, A. ( 1999 ). ‘How do the skilled and the unskilled respond to regional shocks? The case of Spain’, IMF Staff Papers 46 (1), Washington, DC: IMF. http://www.imf.org/External/Pubs/FT/staffp/2008/03/index.htm. | en_US |
dc.identifier.citedreference | Moretti, E. ( 2004 ). ‘Estimating the social return to higher education: Evidence from longitudinal and repeated cross-sectional data’, Journal of Econometrics, 121, pp. 175 – 212. | en_US |
dc.identifier.citedreference | MÜnich, D. and Svejnar, J. ( 2007 ). ‘Unemployment in east and west Europe’, Labour Economics, 14, pp. 681 – 694. | en_US |
dc.identifier.citedreference | MÜnich, D., Svejnar, J. and Terrell, K. ( 2005 ). ‘Returns to human capital from the communist wage grid to transition: Retrospective evidence from Czech micro data’, Review of Economics and Statistics, 87 ( 1 ), pp. 100 – 123. | en_US |
dc.identifier.citedreference | Mykhenko, V. ( 2005 ). ‘What type of capitalism in eastern Europe?’ Centre for Public Policy for Regions, University of Glasgow, Discussion Paper No. 6, Glasgow: University of Glasgow. http://www.gla.ac.uk/departments/economics/research/discussionpapers/. | en_US |
dc.identifier.citedreference | OECD ( 2005 ). Tax-Benefit Models, Paris: OECD. http://www.oecd.org/els/social/workincentives. | en_US |
dc.identifier.citedreference | Overman, H. G. and Puga, D. ( 2002 ). ‘Regional unemployment clusters’, Economic Policy, pp. 117 – 147. | en_US |
dc.identifier.citedreference | Paci, P., Tiongson, T. R., Walewski, M., Liwinski, J., and Stoilkova, M. M. ( 2007 ). ‘Internal labor mobility in central Europe and the Baltic region’ World Bank Working Paper No. 105, Washington, DC: World Bank. http://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalbrowse&journal_id=547001. | en_US |
dc.identifier.citedreference | Pench, L. R., Sestito, P. and Frontini, E. ( 1999 ). ‘Some unpleasant arithmetic of regional unemployment in the EU. Are there any lessons for EMU?’ Economic Papers No. 134. Brussels: European Union DG XII, http://ideas.repec.org/s/fth/eeccco.html. | en_US |
dc.identifier.citedreference | Puga, D. ( 2002 ). ‘European regional policies in light of recent location theories’, Journal of Economic Geography, 2 ( 4 ), pp. 373 – 406. | en_US |
dc.identifier.citedreference | Sabirianova, K. ( 2003 ). ‘Skill-biased transition: The role of markets, institutions and technological change’, IZA Discussion Paper No. 893, Bonn: IZA. http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/publications/papers&topSelect=publications&subSelect=papers. | en_US |
dc.identifier.citedreference | Smarzynska-Javorcik, B. ( 2004 ). ‘Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages’, American Economic Review, 94 ( 3 ), pp. 605 – 627. | en_US |
dc.identifier.citedreference | Suedekum, J. ( 2008 ). ‘Convergence of the skill composition across German regions’, Regional Science and Urban Economics, 38 ( 2 ), pp. 148 – 159. | en_US |
dc.identifier.citedreference | Topel, R. H. ( 1986 ). ‘Local labor markets’, Journal of Political Economy, 94 ( 3 ), pp. 111 – 143. | en_US |
dc.identifier.citedreference | Uhlig, H. ( 2006 ). ‘Regional labor markets, network externalities and migration: The case of German reunification’, American Economic Review, 96 ( 2 ), pp. 383 – 387. | en_US |
dc.identifier.citedreference | Wooldridge, J. ( 2003 ). ‘Cluster-sample methods in applied econometrics’, American Economic Review, 93 ( 2 ), pp. 133 – 138. | en_US |
dc.owningcollname | Interdisciplinary and Peer-Reviewed |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.