| Acknowledgements | 5 |
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| Contents | 7 |
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| Contributors | 9 |
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| Introduction | 14 |
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| References | 26 |
| Part I An Overview of the Main Issues and the Role of Structural Change | 27 |
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| Structural Change and Labour Reallocation Across Regions: A Review of the Literature | 28 |
| Introduction | 29 |
| Motivation | 30 |
| The Link Between Local Worker Reallocation and Unemployment | 33 |
| The Sources of Worker Reallocation | 39 |
| The Weakness of Backward Regions | 44 |
| Globalisation and Regional Imbalances | 45 |
| Adjustment Through Migration? | 47 |
| Poverty Trap Mechanisms | 49 |
| Policy Implications | 50 |
| Benefit Systems and Their Interaction with ALMP | 50 |
| EU Regional Policy | 51 |
| Concluding Remarks | 52 |
| References | 53 |
| Organized Labour and Restructuring: Coal Mines in the Czech Republic and Romania | 59 |
| Introduction | 59 |
| Restructuring Experiences of the Two Regions | 61 |
| Evaluating the Restructuring Paths | 66 |
| Measuring the Value of Labour inside Mines | 67 |
| Measuring the Value of Labour outside Mines | 68 |
| Measuring the Efficiency of Restructuring Paths | 71 |
| Explaining the Restructuring Paths | 75 |
| Gradual Restructuring with Transfer Payments | 75 |
| The Nature of the Miners´ Action | 77 |
| The Corroborating Factors for the Miners´ Action | 80 |
| Conclusion | 81 |
| References | 81 |
| Part II New Evidence on Spatial Convergence | 83 |
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| Labour Productivity Polarization Across Western European Regions: Threshold Effects Versus Neighbourhood Effects | 84 |
| Introduction | 84 |
| Regional Productivity Differentials in Europe: Polarization and Spatial Clustering | 87 |
| Explaining Polarization | 92 |
| The Conditioning Scheme | 92 |
| Growth Regression Model Specifications | 93 |
| Regression Results | 96 |
| Conditioned Ergodic Distributions | 99 |
| Discussion and Conclusions | 101 |
| Appendix: List of regions | 102 |
| References | 104 |
| Transition, Regional Features, Growth and Labour Market Dynamics | 107 |
| Introduction | 108 |
| Transition, Regional Features and Economic Performance: A Partial Review of the Literature | 109 |
| Regional Labour Market Dynamics in Transition Economies | 111 |
| Economic and Structural Convergence of Regions in Europe and in the Transition Countries | 112 |
| Initial Conditions, Transition and Economic Performance: Some Stylized Facts | 115 |
| Initial Economic and Institutional Conditions | 116 |
| Institutional Change and Reform Policies | 118 |
| Economic Performance | 119 |
| Regional Features of Transition Countries: Some Empirical Results | 124 |
| Regional Convergence, Growth, Employment and Institutional Change: Econometric Investigations | 131 |
| Income Convergence of Regions | 131 |
| Value Added and Employment Growth in CEEC Regions | 135 |
| Conclusions and Policy Implications | 139 |
| Appendix | 141 |
| References | 152 |
| Regional Dynamics of Unemployment in Poland A Convergence Approach | 156 |
| Introduction | 157 |
| Literature Review | 159 |
| Methodology | 161 |
| Data | 163 |
| Results - Distribution Dynamics | 165 |
| Results - beta Convergence | 173 |
| Conclusions | 177 |
| References | 179 |
| Spatial Distribution of Key Macroeconomic Growth Indicators in the EU-27: A Theoretical and Empirical Investigation | 181 |
| Introduction | 182 |
| Long-Run Dynamics | 183 |
| Spatial Distribution of Basic Macroeconomic Variables | 184 |
| Estimating the Natural Rate of Unemployment | 186 |
| Estimating ``Pure Productivity´´ | 190 |
| Concluding Remarks | 193 |
| Appendix1 | 194 |
| Appendix2 | 195 |
| Appendix3 | 196 |
| Appendix4 | 197 |
| References | 200 |
| Part III Is Migration Reinforcing Regional Unemployment Differences? | 201 |
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| Internal Labour Mobility in Central Europe and the Baltic Region: Evidence from Labour Force Surveys | 202 |
| Introduction | 203 |
| Review of the Literature | 204 |
| Covariates of Labour Mobility | 205 |
| Data and Methodology | 207 |
| Definition of Mobility | 208 |
| Specification | 209 |
| Main Results | 211 |
| On the De
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