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Regional and Labour Market Development in Candidate Countries. A Literature Survey

Author

Listed:
  • Peter Huber
  • Herbert Brücker

    (German Institute for Economic Research)

  • Janos Köllö

    (Hungarian Academy of Sciences, Institute of Economics)

  • Iulia Traistaru

    (Centre for European Integration Studies)

  • Tomasz Mickiewicz

    (University College London)

Abstract

There has been substantial convergence of candidate countries to Western European institutions and labour market outcomes. Despite this, the labour markets in the candidate countries have their individual features: long and persistent reductions in employment rates as well as a higher incidence of long-term unemployment; more severe mass redundancy regulations and weaker trade unions and social partnership organisations; low turnover in and out of unemployment; and declining internal migration. Accession will trigger institutional changes by the social acquis, environmental and competition policy as well as – at a later stage – accession to EMU, the impact of the EU's structural policy on the candidate countries, and changes in trade, foreign direct investment and migration. In assessing the consequences of these changes, literature is far from unanimous, but some hypotheses can be developed: 1. Integration will have important structural and distributional effects and positive aggregate effects. 2. The capability of labour markets to adjust to such shocks will determine the labour market outcomes of integration. 3. Extrapolating purely from the current labour market dynamics to a time after enlargement may lead to misinterpretations, since "adjustment mechanisms" are endogenous. 4. National policy decisions and use of structural funds are a key in triggering regional convergence. Regional issues should be given attention when analysing integration effects. Experience from previous enlargements suggests that convergence is far from automatic after accession. Policy takes a decisive role in determining the outcomes. Regional development in candidate countries suggests some potential for further divergence.

Suggested Citation

  • Peter Huber & Herbert Brücker & Janos Köllö & Iulia Traistaru & Tomasz Mickiewicz, 2002. "Regional and Labour Market Development in Candidate Countries. A Literature Survey," WIFO Studies, WIFO, number 23340, January.
    • Handle: RePEc:wfo:wstudy:23340
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    References listed on IDEAS

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    Cited by:

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    2. Mihails Hazans, 2007. "Looking for the workforce: the elderly, discouraged workers, minorities, and students in the Baltic labour markets," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 319-349, September.
    3. Kate Bishop & Tomasz Mickiewicz, 2003. "While Labour Hoarding May Be Over, Insiders??? Control Is Not. Determinants Of Employment Growth In Polish Large Firms, 1996-2001," William Davidson Institute Working Papers Series 2003-593, William Davidson Institute at the University of Michigan.
    4. Michael Landesmann & Hermine Vidovic & Terry Ward, 2004. "Economic Restructuring and Labour Market Developments in the New EU Member States," wiiw Research Reports 312, The Vienna Institute for International Economic Studies, wiiw.
    5. Korpysa, Jarosław, 2009. "Entrepreneurship in central-eastern European countries," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 12(3), pages 391-406.
    6. Olgica Bošković & Nikola Njegovan, 2012. "Gender Inequality In The Labour Market In Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(192), pages 113-136, January –.
    7. Thiess Büttner & Peter Huber & Anna Iara & Johannes Rincke & Iulia Traistaru, 2004. "AccessLab: Regional Labour Market Adjustments in the Accession Candidate Countries. Materials No 1," WIFO Studies, WIFO, number 25284.
    8. Julia Bock-Schappelwein & Peter Huber & Klaus Nowotny & Gerhard Streicher, 2009. "Auswirkungen des Grenzgängerabkommens und des Praktikantenabkommens auf den burgenländischen Arbeitsmarkt," WIFO Studies, WIFO, number 38244, January.
    9. Thiess Büttner & Vera Gács & Peter Huber & Anna Iara & Iulia Traistaru & Guntram Wolff, 2003. "Adjustment Capability of Regional Labour Markets," WIFO Studies, WIFO, number 24616, January.

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