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Public and private services transformation in the CEECs

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  • Anze Burger
  • Metka Stare

Abstract

In the period 1995--2005 the convergence of employment shares of the Central and East European Countries (CEECs) to the EU15 average was faster in private than in public services. This reflects the different starting positions of both groups of services and particularly the relative over-employment in public services in the CEECs at the outset of the reforms. Benchmarking the employment shares in CEECs against the average share of market economies at the similar income level shows that some CEECs maintain a disproportionately large share of employment in public services. The evaluation of the progress of the CEECs towards EU15 standards through the lens of the efficiency of private services and the performance of public services, indicates that the gap in private services is much larger. The challenge remains how to simultaneously boost employment and efficiency in private services, while curbing the employment in public services without jeopardising their performance. Exploiting the innovation potential in private and public services as well as the interfaces between the two may contribute to solving the problem.

Suggested Citation

  • Anze Burger & Metka Stare, 2009. "Public and private services transformation in the CEECs," The Service Industries Journal, Taylor & Francis Journals, vol. 30(4), pages 479-496, June.
    • Handle: RePEc:taf:servic:v:30:y:2009:i:4:p:479-496
    DOI: 10.1080/02642060903131666
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