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Labour Market Policy and the Reallocation of Labour Across Sectors

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  • Richard Jackman
  • C Pauna

Abstract

This paper investigates the extent of labour market allocation across broad industrial sectors in the transition of economies of Eastern Europe since 1989. It offers various measures of the magnitude of labour misallocation and of the speed and efficiency of reallocation during the first half of the 1980s. It compares the performance of the economies of Eastern Europe with one another and with two Southern European economies, Greece and Portugal, which have also been experiencing substantial economic change. Contrary to much a pirori theorising, the paper finds no correlation between unemployment and the speed or effectiveness of labour market reallocation. The authors argue that the analysis in the paper strengthens the case for an active as against a passive approach to labour market policy.

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File URL: http://cep.lse.ac.uk/pubs/download/DP0338.pdf
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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0338.

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Date of creation: Mar 1997
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Handle: RePEc:cep:cepdps:dp0338

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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  1. Boeri, Tito & Burda, Michael C, 1995. "Active Labour Market Policies, Job Matching and the Czech Miracle," CEPR Discussion Papers 1302, C.E.P.R. Discussion Papers.
  2. I Beleva & Richard Jackman & M Nenova-Amar, 1995. "The Labour Market in Bulgaria," CEP Discussion Papers dp0268, Centre for Economic Performance, LSE.
  3. Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition Central Europe," NBER Working Papers 4736, National Bureau of Economic Research, Inc.
  4. Hughes, Gordon & Hare, Paul G, 1992. "Industrial Policy and Restructuring in Eastern Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 82-104, Spring.
  5. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Blanchard, Olivier Jean & Aghion, Philippe, 1994. "On the Speed of Transition in Central Europe," Scholarly Articles 4481322, Harvard University Department of Economics.
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Citations

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Cited by:
  1. Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan.
  2. Raiser, Martin & Schaffer, Mark & Schuchhardt, Johannes, 2004. "Benchmarking structural change in transition," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 47-81, March.
  3. Höhenberger, Nicole & Schmiedeberg, Claudia, 2008. "Structural convergence of European countries," Center for European, Governance and Economic Development Research Discussion Papers 75, University of Goettingen, Department of Economics.
  4. Tomasz Mickiewicz & Anna Zalewska, 2002. "Deindustrialisation. Lessons from the StructuralOutcomes of Post-Communist Transition," William Davidson Institute Working Papers Series 463, William Davidson Institute at the University of Michigan.
  5. H Ingham & M Ingham, 2003. "State transitions in Polish agriculture," Working Papers 541970, Lancaster University Management School, Economics Department.
  6. Jacqueline Mazza, 2000. "Seguro de desempleo: estudios de casos individuales y enseñanzas para América Latina y el Caribe," Research Department Publications 4193, Inter-American Development Bank, Research Department.
  7. Jacqueline Mazza, 2000. "Unemployment Insurance: Case Studies and Lessons for Latin America and the Caribbean," Research Department Publications 4192, Inter-American Development Bank, Research Department.
  8. John Earle, 2012. "Industrial decline and labor reallocation in a transforming economy: Romania in early transition," IZA Journal of Labor & Development, Springer, vol. 1(1), pages 1-18, December.
  9. Michael Landesmann & Hermine Vidovic, 2006. "Employment Developments in Central and Eastern Europe," wiiw Research Reports 332, The Vienna Institute for International Economic Studies, wiiw.

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