Labour market flows and the evaluation of labour market policies in Poland

This study investigates three issues of the Polish labour market adapting ''transition methodology'' to regional (Voivodship-level) panel data. First, we test for a well behaved matching technology of the unemployed and vacancies by estimating hiring functions for the years 1991 and 1992. Secondly, the effects of the regime switch from an earnings-related to a flat rate benefit system which took place at the beginning of 1992 is investigated. A priori it is thought that falling replacement ratios may increase search efforts by the unemployed thus boosting hirings. Finally, for 1992 we evaluate the effect of Active Labour Market Policies on hirings. While a well behaved matching technology cannot be established in the Polish labour market, well specified hiring functions are estimated which show that the experience of men and women is very different.