Anna Połeć

Despite long-term transformation and development processes, unemployment remains one of the key socio-economic challenges in the countries of Central and Eastern Europe. The aim of the study presented in the article is to assess the influence of the lagged unemployment rate and regional GDP dynamics on the geographical variation in the unemployment rate in Czechia and Slovakia. The study employed descriptive statistics, the unemployment rate growth equation, ordinary least squares (OLS), generalised method of moments (GMM) and fixed effects models. The analysis was based on data for the years 1995–2022 from statistical offices of Czechia and Slovakia. Prague recorded the highest GDP and the lowest unemployment; Bratislava could also boast high GDP and low unemployment rates. In both the OLS- and GMM-estimated unemployment growth equations (with some exceptions), the previous unemployment rate had a statistically significant impact on its increase. GDP growth in Czech and Slovak regions generally reduced the increase in unemployment rates. The results of the analyses provide a basis for formulating practical recommendations regarding the directions of the development of regional and economic policies.

The aim of this article is to generalise the Solow growth model and to show that, in such a generalised model, there can be more than one non-trivial stationary point. In the neoclassical theory of economic growth, based on the Solow-Swan model, technology is exogenous. Growth models are characterised by a different approach, in which technology (or knowledge) is developed endogenously. Exogenous technology is introduced to the economy ‘from the outside’, while endogenous technology applies when its level depends on another macroeconomic variable in the model. This paper proposes an alternative generalisation of the Solow model with endogenous technology, which is related to the capital-labour ratio in such a way that the level of technology increases as the value of this variable grows. We also analysed the dynamics of the model, determined the stationary points and analysed their stability. Furthermore, we demonstrated the conditions allowing the existence of a stable stationary state. Numerical simulations were carried out to determine the trajectories of the macroeconomic variables examined in the study. We showed that there are two non-trivial stationary points above the savings rate threshold value. The unstable stationary point defines the poverty limit. If the initial level of capital per worker in an economy is below the value of this point, the macroeconomic variables converge to 0 in the long run. If the initial level of capital per worker is greater than this value, the macroeconomic variables converge to a stable stationary point. Moreover, since in general, the value of the capital-labour ratio determines both the level of technology and labour productivity, these variables behave in the same way as the former.

This study investigates the impact of unemployment and labour productivity on relative wages in Polish counties (powiats) from 2008 to 2021. Labour productivity is measured as the ratio of sold industrial production to the number of workers. The data is sourced from the Local Data Bank of Statistics Poland. The analysis employs the Solow model of efficiency wages, the neoclassical Solow model, and the Durbin model of spatial econometrics. The results reveal that both unemployment and labour productivity are statistically significant in explaining relative wages, with unemployment having the strongest, albeit negative, effect during the study period. Notably, changes in unemployment rates or wages in a county influence wage changes in neighbouring counties. The issue of spatial wage differences at the county level in Poland has not been sufficiently explored in recent years. Although recent research has focused on regional (voivodeship-level) wage differences, there remains a gap in understanding wage differences at the county level. Given changes in the Polish labour market, particularly due to the COVID-19 pandemic, this study aims to update previous findings and provide a more detailed analysis.