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The Changing Demand for Skills: Evidence from the Transition

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Author Info
Commander, Simon () (London Business School, EBRD and IZA Bonn)
Kollo, Janos (Institute of Economics, Budapest and IZA Bonn)
Abstract

Transition has involved major job destruction and creation. This paper examines the skill content of these changes using a detailed three country firm survey. It shows that transition has exerted a strong bias against unskilled labour who have lost employment disproportionately. Moreover, job creation in new firms tends to be biased against workers with low educational attainments and skills. The skill content of blue collar work has also shifted upwards. Although there is variation across the sampled countries, these appear to be common features. They will have major longer run implications for the level and structure of employment and for inequality through the distribution of earnings.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1073.

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Length: 31 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1073

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Related research
Keywords: job reallocation; human capital; transition; Hungary; Romania; Russia;

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Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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  1. Giovanni S.F. Bruno & Rosario Crinò & Anna M. Falzoni, 2004. "Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries," CESPRI Working Papers 154, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Feb 2004. [Downloadable!]
    Other versions:
  2. Daniela Andren & John S. Earle & Dana Sapatoru, 2004. "The Wage Effects of Schooling under Socialism and in Transition: Evidence from Romania, 1950-2000," Staff Working Papers 04-108, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
    Other versions:
  3. Stepán Jurajda & Katherine Terrell, 2007. "Regional Unemployment and Human Capital in Transition Economies," IZA Discussion Papers 3176, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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This page was last updated on 2009-12-14.

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