Internal Labor Mobility in Central Europe and

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.

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

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