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Boosting Job Growth in the Western Balkans

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  • Dmitriy Kovtun
  • Alexis Mayer Cirkel
  • Zuzana Murgasova
  • Dustin Smith
  • Suchanan Tambunlertchai
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    Abstract

    Labor markets in the Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia) are characterized by some of the highest unemployment and low employment rates in Europe. We analyze the poor labor market outcomes in these countries by comparison with the New Member States of the European Union and advanced European economies. Our findings suggest that long-lasting labor market weaknesses in the Western Balkans have structural roots: the institutional setup of the labor markets, labor cost factors, and especially the unfinished transition process. Finally, we offer policy recommendations for boosting job creation.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 14/16.

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    Length: 30
    Date of creation: 28 Jan 2014
    Date of revision:
    Handle: RePEc:imf:imfwpa:14/16

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    Related research

    Keywords: Labor markets; Albania; Bosnia and Herzegovina; Kosovo; Macedonia; former Yugoslav Republic of; Montenegro; Serbia; Eastern Europe; Workers remittances; Emerging markets; Cross country analysis; Labor markets; The Balkans;

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    1. Hansen, G.D. & Imrohoroglu, A., 1990. "The Role Of Unemployment Insurance In An Economy With Liquidity Constraints And Moral Hazard," Papers, California Los Angeles - Applied Econometrics 21, California Los Angeles - Applied Econometrics.
    2. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(462), pages C1-33, March.
    3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198284345, October.
    4. Andrea Bassanini & Luca Nunziata & Danielle Venn, 2009. "Job protection legislation and productivity growth in OECD countries," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 24, pages 349-402, 04.
    5. Rafael LALIVE, 2006. "How do Extended Benefits affect Unemployment Duration? A Regression Discontinuity Approach," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 06.06, Université de Lausanne, Faculté des HEC, DEEP.
    6. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    7. Laurence Ball & N Gregory Mankiw, 2002. "The NAIRU in Theory and Practice," Economics Working Paper Archive, The Johns Hopkins University,Department of Economics 475, The Johns Hopkins University,Department of Economics.
    8. David A. Grigorian & Tigran A. Melkonyan, 2011. "Destined to Receive: The Impact of Remittances on Household Decisions in Armenia," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 15(1), pages 139-153, 02.
    9. Koettl, Johannes & Weber, Michael, 2012. "Does Formal Work Pay? The Role of Labor Taxation and Social Benefit Design in the New EU Member States," IZA Discussion Papers 6313, Institute for the Study of Labor (IZA).
    10. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, American Economic Association, vol. 96(2), pages 222-226, May.
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