Regional Unemployment and Human Capital in Transition Economies

Regional Unemployment and Human Capital in Transition Economies

Regional Unemployment and Human Capital in Transition Economies Differences in regional unemployment in post-communist economies are large and persistent. We show that inherited variation in human-capital endowment across the regions of four such economies explains the bulk of regional unemployment variation there and we explore potential explanations for this outcome through related capital an...

Human Capital , Growth and Inequality in Transition Economies

Human Capital and the Regional Italian Development: Does Unemployment matter?

In this paper contrary to several empirical contributions we report a positive and significant influence of schooling investment on the long run growth of the Italian regions in the period 1963-1995. This result is obtained when the unemployment rate is added as an additional controlling dimension. In the theoretical part of the paper we propose a growth model that could account for these empir...

Unemployment and Human Capital∗

The paper explores the interaction between sector-specific human capital accumulation and sector-specific productivity or demand shocks. Our objective is to better understand the determinants of skill and experience premia, the costs of displacement for workers with long job tenure, and the nature of unemployment among such workers. For example, our model suggests why skilled workers can remain...

Human Capital and the Future of Transition Economies

Transition economies have an initial condition of high human capital relative to GDP per capita. But they will not necessarily realize their latent high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational ach...