Different methods can be selected from the statistical mathematical toolbar to describe labor market processes. The paper applies Markov model, a method rarely used in regard to labor market. This method is popular in several disciplines including regional economics to manage income inequalities, sociology, microeconomics and public health. The advantage of the model is that it illustrates well the mobility in each status making it easier to generate predictions. The paper examines NUTS3 level unemployment data in Hungary over the period 1992–2009 using Markov chain model.
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