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Local unemployment in Poland: rural-urban contrasts

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Unemployment continues to bedevil Poland, albeit with striking sub-national differences, which this article seeks to explain using random effects error component two-stage estimation for the country's NUTS 4 (nomenclature des unites territoriales statistiques) 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.

Document Type: Research Article


Affiliations: 1: Department of Economics, Lancaster University, Lancaster LA1 4YX, UK 2: Ansdell Consulting, 41 Blackpool Road, Lytham St Annes, FY8 4EJ, UK 3: KLON/JAWOR, Warsaw, Poland

Publication date: April 1, 2011

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