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Labor markets in transition in Central and Eastern Europe : 1989-1995 (Inglês)

Persistent unemployment has emerged as one of the most critical outcomes of transition from socialism in Central and Eastern Europe. High unemployment rates, including a growing proportion of long-term unemployed, represent a serious challenge to social welfare systems and policymakers. This paper analyzes labor market developments in nine transition countries of the region -Bulgaria, Croatia, the Czech Republic, FYR Macedonia, Hungary, Poland, Romania, Slovakia, and Slovenia- focusing on the dynamics of labor force behavior, employment and unemployment. Macroeconomic reforms and the output collapse initiated dramatic changes in labor markets. Following decades of stability and near-zero level unemployment, demand for labor plummeted. Labor force size contracted, and public sector employment fell substantially. Between 1989 and 1993, open unemployment grew rapidly as state-owned enterprises adjusted the size of the labor force to a hard budget ceiling and increased competition. Six years into the transition, unemployment levels remain high in most countries, excepting the Czech Republic. Long-term unemployment, growing steadily, comprises a high share of total unemployment, and is increasingly correlated with deep poverty. Labor markets have become key determinants of the winners and the losers in the transition process. Job losses, leading to unemployment or labor force withdrawals, have not only meant loss of wages, but also a range of other benefits previously associated with employment. Reshaping of family benefits has lagged behind labor market adjustments, and their reform requires urgent attention in many countries. Despite painful adjustments, labor markets have served as dynamic complements to economic restructuring and liberalization. Private sector employment has increased significantly, with privatization and the growth of new private enterprises, and employment structures have adjusted to accommodate changes in the demand for labor. Sectors previously cornerstones of the socialist economy have declined, while service sector employment has expanded. However, it remains unclear how far labor market adjustment can or will go, especially regarding inter-regional mobility. As poverty in the region grows, and is increasingly correlated with long-term unemployment, factors which facilitate the flexibility and adaptability of labor markets, including labor mobility, education and opportunities for self-employment grow increasingly critical.

Detalhes

  • Autor

    Allison, Christine Ringold, Dena

  • Data do documento

    1996/12/31

  • TIpo de documento

    Publicação

  • No. do relatório

    WTP352

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Europa e Ásia Central,

  • Região

    Europa e Ásia Central,

  • Data de divulgação

    2010/07/01

  • Nome do documento

    Labor markets in transition in Central and Eastern Europe : 1989-1995

  • Palavras-chave

    Labor Market;discouraged worker;labor force participation;state owned enterprise;demand for labor;working age population;Informal Economy;market for water right;Social Costs of Transition;labor force participation rate;labor market adjustment;Private Sector Growth;industrial production;private sector share;private sector employment;small private enterprises;labor market development;social welfare system;high unemployment rate;employment and unemployment;public sector employment;share of woman;informal sector employment;early retirement program;structure of employment;flexibility and adaptability;labor force mobility;Young Workers;retirement age;disability pension;trade and services;quality and efficiency;share of employment;impact of shock;number of beneficiaries;effect on employment;crude birth rate;crude death rate;duration of unemployment;drops in output;growth of unemployment;expansion of access;improved living standard;social insurance contribution;disruption of trade;irrigation management transfer;Air Quality Management;pace of privatization;privatization of state;solar energy investment;increase in labor;formal labor market;basic social service;liberalization of prices;competitive labor market;declining birth rate;capacity of individual;economies in transition;return to education;flow of information;hard budget constraint;early retirement pension;private sector job;child care subsidy;allocation of labor;loss of wage;labor force survey;payment of wage;labor market transition;flow of worker;informal sector activity;informal economic activity;labor force working;absence of regulation;private sector activity;labor force statistics;soft budget constraint;flexible working schedule;discrimination against woman;white collar worker;number of workers;education and health;restructuring of industry;output collapse;employment loss;labor shedding;unemployment benefit;eligibility requirement;Socialist economies;long-term unemployment;heavy industry;increasing share;employment growth;real wage;labor productivity;Higher Education;registered unemployment;agricultural employment;market force;economic reform;open unemployment;state sector;central planning;employment structure;job loss;transition economy;Transition economies;older worker;prime age;pension scheme;demographic data;official statistic;pension arrangement;pension benefit;persistent unemployment;pension system;total employment;paid worker;fiscal crisis;transition countries;transition country;macroeconomic reform;production decision;real income;labor mobility;political stability;Real estate;economic liberalization;entrepreneurial activity;stabilization measure;political pressure;transition shock;market reform;full employment;regional trends;fiscal burden;work force;central planner;regulatory gap;employment adjustments;fundamental changes;foreign debt;increased competition;bankruptcy legislation;income differentiation;private employment;employment practice;longterm unemployment;dependency ratio;price liberalization;electoral success;urgent attention;involuntary separation;family benefit;unemployed worker;employment cost;survey data;eligibility criterion;fiscal constraint;Macroeconomic Trends;educational system;demographic composition;price control;support policy;pension program;government budget;welfare gains;mobile workforce;standard practice;enterprise behavior;Socialist countries;allocative efficiency;working condition;production quota;social policy;Natural Resources;fiscal policy;Fiscal policies;social policies;aging population;government response;pensionable age;state industry;employment pattern;job opportunities;job opportunity;historical data;secondary sources;school leaver;commercial ties;external market;seasonal effect;international market;agricultural society;wage employment;massive labor;internal market;trade relationship;internal shocks;inefficient allocation;state enterprises;income disparity;external factor;agricultural marketing;monetary reform;reform policy

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