Decomposition of unemployment rates in Poland according to voivodeships in the years 2013–2018
DOI:
https://doi.org/10.26485/SPE/2020/115/14Keywords:
region, unemployment, employment, activity rateAbstract
Background: Unemployment is a phenomenon that occurs in all market economies, although with different intensity. Its rate is influenced by many factors related to labour demand and labour supply, as well as by structural mismatches between the two sides of the labour market, its effectiveness, the type of macroeconomic policy, and the labour market institutions.
Research purpose: The aim of the research is to determine the influence of labour supply and labour demand factors on changes in unemployment rates in Polish voivodeships from 2013 to 2018.
Methods: The unemployment rates for Poland and its voivodeships are decomposed using the aggregate data on unemployment rates, employment rates, and economic activity rates published by the GUS and the formula proposed by Elsby, Hobijn, and Sahin (2010).
Conclusions: The research results point to rising employment rates as the key factor driving the fall of unemployment rates between 2013 and 2018 in most Polish voivodeships. The exceptions are the Lubelskie and Świętokrzyskie voivodeships, where unemployment rate decreases were mainly caused by outflows from employment to inactivity. The downward trends in unemployment rates in Poland and some of its voivodeships in the years 2015–2018 were facilitated by processes taking place on the supply side of the labour market.
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References
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