Regional unemployment differentials and internal migration in Hungary
Regional unemployment differentials and internal migration in Hungary

Summary/Abstract: Since the beginning of the post-socialist economic reforms, most east European countries have experienced a growing labour market segmentation. Striking characteristics are the concentration of unemployment among certain social groups, such as young people, older workers with low skills and women, as well as the clear geographical dimension of unemployment. Unemployment rates vary considerably across regions within a country, usually more so than in western market economies. According to the Hungarian Central Statistical Office (CSO),1 the rate of registered unemployed in Hungary amounted to 10.4% nationwide by the end of 1997, but it varied from county to county, from between 4.5% (Budapest) to 19.3% (Szabolcs-Szatmár-Bereg). This article empirically analyses how one potential mechanism for equalising regional unemployment disparities, namely internal migration, has responded to the unemployment differentials in Hungary during the time period 1990-1996.

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