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Description:
Low participation and spatial polarisation are two interrelated features of the Hungarian labour market. The paper investigates these features taking stock of stylised facts and results of the relevant empirical literature. The first part gives a brief overview of the Impact of transition an the Hungarian labour market. Three phases of transition are discussed and post-transitional labour market development is described in an international comparison. In the second part of the paper the main reasons for the low employment and high inactivity rates are pointed out. In the third part determinants of the spatial labour market differences and polarisation are analysed. The fourth part concludes and offers some policy options.