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Unemployment, Labour Market Institutions and Structural Change in Eastern Europe

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  • Burda, Michael C

Abstract

This paper surveys the emerging labour markets of the transforming economies of Central and Eastern Europe. Pissarides's model of equilibrium unemployment highlights the dynamics of labour markets as an important factor in the transformation, and labour market institutions will determine the long-run unemployment rate. A brief survey of institutions reveals considerable cross-country variance. Using data from Czech and Slovak employment districts, a matching function is successfully estimated. The flow approach to labour markets holds normative implications for the optimal closure or restructuring of the public sector, which are derived. The optimal closure policy is a `mixed-bang' neither a `big-bang' nor benign neglect is optimal.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 746.

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Date of creation: Nov 1992
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Handle: RePEc:cpr:ceprdp:746

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Related research

Keywords: Eastern Europe; Labour Markets; Matching Function; Transformation; Unemployment Benefits;

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Cited by:
  1. Janez Prasnikar & Jan Svejnar, 1998. "Investment Wages and Ownership During the Transition to a Market Economy: Evidence from Slovenian Firms," William Davidson Institute Working Papers Series 144, William Davidson Institute at the University of Michigan.
  2. Balla, Katalin & Kollo, Janos & Simonovits, András, 2006. "Transition with Heterogeneous Labor," IZA Discussion Papers 2179, Institute for the Study of Labor (IZA).
  3. Stepan Jurajda & Katherine Terrell, 2000. "Optimal Speed of Transition: Micro Evidence from the Czech Republic," William Davidson Institute Working Papers Series 355, William Davidson Institute at the University of Michigan.
  4. Petr Mareš & Tomáš Sirovátka, 2005. "Unemployment, Labour Marginalisation, and Deprivation (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 54-67, January.
  5. Avdullah Hoti, 2004. "Human Capital and Unemployment in Transition Economies: The Case of Kosova," Labor and Demography 0412007, EconWPA.
  6. Grafe, Clemens & Wyplosz, Charles, 1997. "The Real Exchange Rate in Transition Economies," CEPR Discussion Papers 1773, C.E.P.R. Discussion Papers.
  7. Randolph Luca Bruno, 2003. "Speed of Transition, Unemployment Dynamics and Nonemployment Policies: Evidence from the Visegrad Countries," LEM Papers Series 2003/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  8. Daniel Munich & Jan Svejnar & Katherine Terrell, 2001. "Worker-firm Matching and Unemployment in Transition to a Market," Development and Comp Systems 0012011, EconWPA.
  9. Sanna-Mari Ahtonen, 2004. "Matching across space: evidence from Finland," ERSA conference papers ersa04p205, European Regional Science Association.
  10. Polona Domadenik & Lubomir Lizal & Marko Pahor, 2003. "Effect of Enterpise Break-Ups on Performance: Case of Former Yugoslav Republic of Macedonia," CERGE-EI Working Papers wp216, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  11. F.A.G. den Butter & M. van Dijk, 1997. "The Pace of Structural Change, Cyclical Shocks and Unemployment Dynamics," Tinbergen Institute Discussion Papers 97-053/3, Tinbergen Institute.
  12. Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan.
  13. Rutkowski, Michael, 1995. "Workers in transition," Policy Research Working Paper Series 1556, The World Bank.
  14. Jurajda, Štepán & Terrell, Katherine, 2002. "What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment?," IZA Discussion Papers 601, Institute for the Study of Labor (IZA).
  15. Boeri, Tito, 2000. "Optimal Speed of Transition 10 Years After," CEPR Discussion Papers 2384, C.E.P.R. Discussion Papers.
  16. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.

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