Internal Labor Mobility in Central Europe and the Baltic Region

by Erwin Tiongson, Pierella Paci, Mateusz Walewski, Jacek Liwinski, Maria M. Stoilkova

Overview

Large regional disparities in labor market indicators exist in Central Europe and the Baltic region. Such disparities appear to be persistent over time indicating, in part, a lack of flexibility in the prevailing adjustment mechanisms. Internal labor mobility is often seen as an important instrument to reduce adjustment costs when other mechanisms fail. Drawing from a variety of data sources and utilizing a common empirical framework and estimation strategy, this study identifies patterns and statistical profiles of geographical mobility. It finds internal migration to be generalily low and highly concentrated among better-educated, young, and single workers. This suggests that migration is more likely to reinforce existing inequalities than to act as an equalizing phenomenon. By way of contrast, commuting flows have grown over time and are more responsive to regional economic differentials. The findings suggest the need for appropriate and country-tailored policy measures designed to increase the responsiveness of labor flows to market conditions.

Product Details

ISBN-13:	9780821370902
Publisher:	World Bank Publications
Publication date:	05/17/2007
Series:	World Bank Working Papers , #105
Pages:	100
Product dimensions:	6.80(w) x 9.80(h) x 0.40(d)

Table of Contents

Acknowledgments     v
Acronyms and Abbreviations     vii
Executive Summary     ix
Introduction     1
Background: Some Emerging Concerns     1
The Objectives and Scope of This Report     3
The Value Added of This Analysis     5
The Structure of the Report     5
Regional Labor Market Disparities     7
Background     7
Magnitude of Spatial Disparities in Unemployment     8
Regional Unemployment Disparities and Adjustment Mechanisms     17
Introduction     17
Adjustment Mechanisms: Three Main Channels     18
Adjustment Mechanisms: Empirical Evidence     19
Concluding Remarks     28
Labor Mobility: Levels and Covariates     31
Review of Stylized Facts     31
Review of The Literature     33
Determinants of Individual Mobility: Evidence from Micro Data     38
Summary and Conclusion     55
Main Findings     55
Options for Policy Action     60
Issues for Further Work     63
Appendix     65
References     73