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Skill Acquisition and Firm Creation in Transition Economies

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  • Wenli Li
  • Zuzana Brixiova
  • Tarik Yousef

Abstract

The transition from plan to market has hinged on the development of a dynamic private sector that would serve as the engine of growth and employment creation. This paper examines the link between the availability of skilled workers and the creation of new private firms. Using a dynamic search model, it shows how the lack of skilled workers inhibits entrepreneurship and depresses the rate of firm creation, slowing the recovery of aggregate output and labor productivity during the transition. The paper also shows how policies designed to encourage skill acquisition by workers have a positive impact on the economy.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 99/130.

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Length: 31
Date of creation: 01 Sep 1999
Date of revision:
Handle: RePEc:imf:imfwpa:99/130

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Cited by:
  1. Duranton, Gilles & Haniotis, Toni, 2004. "A comparison between economic systems with an application to transition," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 2125-2157, August.
  2. Ernesto Hernández-Catá, 2001. "The Fall and Recovery of the Cuban Economy in the 1990's," IMF Working Papers 01/48, International Monetary Fund.
  3. Volkhart Vincentz & Michael Knogler, 2003. "Szenarien der mittelfristigen Konvergenz der EU-Beitrittsländer Polen, Slowakische Republik und Ungarn," Working Papers, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) 244, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  4. Dirk Bezemer & Uwe Dulleck & Paul Frijters, 2003. "Socialism, Capitalism, and Transition - Coordination of Economic Relations and Output Performance," School of Economics and Finance Discussion Papers and Working Papers Series, School of Economics and Finance, Queensland University of Technology 168a, School of Economics and Finance, Queensland University of Technology.
  5. Zuzana Brixiova & Vera Volchok, 2005. "Labor Market Trends and Institutions in Belarus," William Davidson Institute Working Papers Series wp777, William Davidson Institute at the University of Michigan.
  6. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, Elsevier, vol. 33(1), pages 45-59, March.
  7. Michael Knogler, 2002. "Arbeitsmarktpolitische Herausforderungen in den Ländern der EU-Beitrittskandidaten," Working Papers, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) 235, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).

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