Large regional disparities in labor market indicators exist in
Central Europe and the Baltic region. Such disparities appear to be
persistent over time indicating, in part, a lack of flexibility in
the prevailing adjustment mechanisms. Internal labor mobility is
often seen as an important instrument to reduce adjustment costs
when other mechanisms fail. Drawing from a variety of data sources
and utilizing a common empirical framework and estimation strategy,
this study identifies patterns and statistical profiles of
geographical mobility. It finds internal migration to be generalily
low and highly concentrated among better-educated, young, and
single workers. This suggests that migration is more likely to
reinforce existing inequalities than to act as an equalizing
phenomenon. By way of contrast, commuting flows have grown over
time and are more responsive to regional economic differentials.
The findings suggest the need for appropriate and country-tailored
policy measures designed to increase the responsiveness of labor
flows to market conditions.
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