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Regional unemployment in Poland: rural-urban contrasts

Research output: Contribution to Journal/MagazineJournal articlepeer-review

<mark>Journal publication date</mark>2011
<mark>Journal</mark>Applied Economics
Issue number10
Number of pages12
Pages (from-to)1175-1186
Publication StatusPublished
<mark>Original language</mark>English


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.