Regional Disparities in Labor Market Performance in Croatia : The Role of Individual and Regional Structural Characteristics
The labor market performance in Croatia failed to keep pace with the moderately good overall macroeconomic development in the past few years. Youth, the less well-educated, and women face more difficulties in getting a job with a decent salary. A l...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/03/7465258/regional-disparities-labor-market-performance-croatia-role-individual-regional-structural-characteristics http://hdl.handle.net/10986/7218 |
| Summary: | The labor market performance in Croatia
failed to keep pace with the moderately good overall
macroeconomic development in the past few years. Youth, the
less well-educated, and women face more difficulties in
getting a job with a decent salary. A large part of the
difference in regional labor market performance is
associated with the difference in the human capital
endowment. With a stagnant total employment rate, the large
disparities in employment and earnings across individual
groups and regions have become one of the concerns for the
long-term sustainable development of the economy. Using
Labor Force Survey (LFS) data from 2002-04, this paper
studies the labor market performance in Croatia at the
national and regional levels. The results show that both
one's individual characteristics (including age,
education and gender) and where he or she works plays a role
in his or her employment and earnings. Regional differences
in employment and earnings are reduced to a large extent
when accounting for differences in individual
characteristics. The simulations shed light on the
effectiveness of the nationwide education policy and
regional specific labor market policy, and suggest that
improving human capital endowment and adjusting labor market
structure are both important to rebalance regional
development and enhance total welfare. |
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