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Duration of Regional Unemployment Spells in Slovenia.doc

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Duration of Regional Unemployment Spells in Slovenia

DurationofRegionalUnemployment SpellsinSlovenia DarjaBor?iˇc AlenkaKavkler ThepaperbeginswithanoverviewoftheunemploymentrateinSlove- niaandfocusesondurationofunemploymentandregionalcharac- teristicsoftheunemploymentrates.Itisshownthatthedispersionof regionalunemploymentrateisgraduallydecreasingandisalsoslightly belowEuropeanaverageonnuts 3level.Theanalysisoftheduration ofregionalunemploymentspellsisbasedonthedataobtainedfromthe EmploymentO?ceoftheRepublicofSlovenia,whichconsistsofthe unemploymentspellsbetweenJanuary1st,2002andNovember18th, 2005withmorethan450,000entries.TheKaplan-Meierestimatesof thesurvivalfunctionarepresentedandthee?ectsofregiononthedu- rationofunemploymentspellsarediscussed. KeyWords:unemployment,regions,survivalanalysis,Kaplan-Meier estimator,Slovenia jelClassi?cation:p33,p34 Introduction Intheprevioussystemtheregionswithintransitioncountrieshadbeen moreorlessequallydevelopedandhadregisteredsimilarvolumeofeco- nomicactivity.Thestructuralchangewitnessedbythesecountriesdue toadoptingthemarketeconomiesinmanycasescausedsubstantialre- gionaldi?erences. According to Huber (2007) the regional consequences of transition raiseanumberofissues:identifyingthecausesofregionaldi?erences, labour market mechanisms regarding wage ?exibility and migration, new?rmcreationandeconomicpolicyresponsetoregionaldisparities. Answeringthesequestionscouldhelpincopingwithcharacteristicsof nationallabourmarkets,andthus,improvethee?ciencyofeconomic policy. DrDarjaBor?iˇcisanAssistantProfessorattheFacultyofEconomics andBusiness,UniversityofMaribor,Slovenia. DrAlenkaKavklerisaTeachingAssistantattheFacultyofEconomics andBusiness,UniversityofMaribor,Slovenia. ManagingGlobalTransitions7(2):123–146 124 DarjaBor?iˇcandAlenkaKavkler Analyses of regional unemployment in transition countries include R?mischandWard(2005)andLandesmannandR?misch(2006 ).Re- centreviewpapersonthetopicofregionalunemploymentincludeEl- horst2003,Huber2007,FerraginaandPastore2008.Empiricalestimates ofre