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Quantity adjustments in the regional labour markets of EU candidate countries
Author(s) -
Gács Vera,
Huber Peter
Publication year - 2005
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2005.00044.x
Subject(s) - unemployment , economics , member states , eu countries , labour economics , international economics , european union , macroeconomics
. The article comprises an analysis of the adjustment of regional labour markets of former (and present) EU candidate countries to asymmetric shocks. As in EU member states, a substantial part of the adjustment to changes in employment in candidate countries is carried by participation decisions, and migration plays a small role. Candidate countries, however, have experienced larger region‐specific shocks to labour demand than member states, and these shocks lead to higher long‐run changes in employment. Furthermore, adjustment mechanisms partly explain high regional unemployment. High unemployment regions exhibit a lower capability to absorb region‐specific shocks through mechanisms other than higher unemployment.