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Labour market reforms in the context of political power theory: The case of Slovenia

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  • Mitja Cok

    ()
    (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Polona Domadenik

    (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Tjasa Redek

    (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Miroslav Verbic

    (Institute for Economic Research, Ljubljana, Slovenia)

Abstract

The rigidity of labour market has several important negative economic consequences: it stifles job creation, increases discrimination of those that it is actually aimed at protecting (young, women and the low-skilled), hurts the unemployed, slows down economic restructuring and damages its global competitiveness. But reforms are slow and often marked with disputes among partners in the collective bargaining process. Afraid of social security loss, unions usually oppose the re- form, while governments usually give in to the union pressures and negative image of reform consequences created by unions and assisted by media. The characteristics of the labour market and labour market reform with respect to bargaining among power groups are examined both theoretically and empirically in the case of Slovenia.

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Bibliographic Info

Article provided by University of Rijeka, Faculty of Economics in its journal Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics.

Volume (Year): 27 (2009)
Issue (Month): 1 ()
Pages: 57-82

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Handle: RePEc:rfe:zbefri:v:27:y:2009:i:1:p:57-82

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Keywords: labour market flexibility; re-election process; reforms; Slovenia;

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References

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Cited by:
  1. Verbic, Miroslav & Majcen, Boris & Cok, Mitja, 2009. "R&D and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," MPRA Paper 17819, University Library of Munich, Germany.

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