In the European Union, unemployment rates differ markedly across regions, both within and across nations. This study presents a coherent theoretical approach to explain the emergence and persistence of such regional unemployment disparities. The analysis builds on the wage curve literature, and...

Does migration facilitate regional adjustment to idiosyncratic shocks in transition economies; If so, one should find a strong relationship between regional unemployment and average wages on the one hand, and migration flows on the other. Yet, the evidence from transition economies indicates...

Does migration facilitate regional adjustment to idiosyncratic shocks? The evidence from post-communist economies indicates that the efficacy of migration in reducing interregional unemployment and wage differentials is low. High wages appear to encourage and high unemployment tends to...