Regional Dynamics of Unemployment in Poland - A Convergence Approach

In this paper we approach the regional unemployment dynamics in Poland. Using policy relevant NUTS4 level data for 1999 till 2006 we employ tools typically applied to income convergence analyses to inquire the patterns of unemployment distribution. We apply diverse analytical techniques to seek traces of convergence, including beta and sigma convergence as well as pass-through analysis. We demonstrate that it is highly stable over time, while only weak "convergence of clubs" is supported by the data and only for the high unemployment regions. Results suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment dierentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be slightly more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur predominantly for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to dierentiated divergence paths. Importantly, these tendencies prevail despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions.regional unemployment rate dierentials, convergence analysis, Poland

Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland

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").nonlinear convergence, stochastic convergence, unemployment, transition, Poland

Unemployment Convergence in Transition

In this paper an attempt is made to inquire the dynamics of regional unemployment rates in transition economies. We use policy relevant NUTS4 unemployment rates for transition economies characterised by both relatively intense (Poland, Slovaka) and relatively mild labour market hardships (namely Czech Republic). We apply diverse analytical techniques to seek traces of convergence, including beta - and sigma-convergence as well as time-series approach. Results in each of the countries suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment differentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur frequently for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to differentiated divergence paths. Importantly, these tendencies persists despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions in all these countries.unemployment, beta-type convergence, sigma-type convergence, stochastic convergence, social cohesion

Networks and Competitiveness in Polish Foreign-owned and Domestic Firms

In this study deepens the available knowledge about the networks of Polish manufacturing firms. Among the questions touched upon in this analysis are: Do foreign-owned companies have less developed networks of Polish suppliers than domestically owned companies? What is the role of the science and technology sector in industrial innovation? What benefits do firms derive from cooperation with various types of partners? To achieve a mix of mature and emerging industries, four manufacturing industries were selected for analysis: • electronics • auto/auto parts • pharmaceuticals •food and beverages. The introduction, briefly overviews the recent development and performance of the four industries in Poland. The second section presents case studies of eight firms – two from each of the four industries studied. These case studies were carried out in 2003. The third section, analyzes data collected from a sample of 226 companies in 2004.Networks, upgrading, Poland, manufacturing, competitiveness.

Regional Dynamics of Unemployment in Poland - A Convergence Approach

In this paper we approach the regional unemployment dynamics in Poland. Using policy relevant NUTS4 level data for 1999 till 2006 we employ tools typically applied to income convergence analyses to inquire the patterns of unemployment distribution. We apply diverse analytical techniques to seek traces of convergence, including beta and sigma convergence as well as pass-through analysis. We demonstrate that it is highly stable over time, while only weak "convergence of clubs" is supported by the data and only for the high unemployment regions. Results suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment dierentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be slightly more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur predominantly for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to dierentiated divergence paths. Importantly, these tendencies prevail despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions

Regional Dynamics of Unemployment in Poland - A Convergence Approach

In this paper we approach the regional unemployment dynamics in Poland. Using policy relevant NUTS4 level data for 1999 till 2006 we employ tools typically applied to income convergence analyses to inquire the patterns of unemployment distribution. We apply diverse analytical techniques to seek traces of convergence, including beta and sigma convergence as well as pass-through analysis. We demonstrate that it is highly stable over time, while only weak "convergence of clubs" is supported by the data and only for the high unemployment regions. Results suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment dierentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be slightly more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur predominantly for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to dierentiated divergence paths. Importantly, these tendencies prevail despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions

Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland

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")

Unemployment Convergence in Transition

In this paper an attempt is made to inquire the dynamics of regional unemployment rates in transition economies. We use policy relevant NUTS4 unemployment rates for transition economies characterised by both relatively intense (Poland, Slovaka) and relatively mild labour market hardships (namely Czech Republic). We apply diverse analytical techniques to seek traces of convergence, including beta - and sigma-convergence as well as time-series approach. Results in each of the countries suggest no support in favour of beta-type convergence, i.e. convergence of levels. Even controlling for nation-wide labour market outlooks (conditional convergence) does not provide any support to this hypothesis. Further, regions with both very high and very low unemployment show signs of high persistence and low mobility in the national distribution, while the middle ones tend to demonstrate higher mobility and essentially no regional unemployment differentials persistence. This diagnosis is confirmed by sigma-convergence analysis which indicates no general divergence or convergence patterns. Transitions seem to be more frequent, but at the same time less sustainable for middle range districts, while movements up and down the ladder occur frequently for the same districts. Findings allow to define the patterns of local labour market dynamics, pointing to differentiated divergence paths. Importantly, these tendencies persists despite cohesion policies financing schemes, which allocate relatively more resources to deprived regions in all these countries