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Labour Markets in Albania and Other Transition Economies: Theory and Recent Developments

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Author Info

  • Elida Cuka
  • Harry Papapanagos

    ()

  • Natasha Polo
  • Peter Sanfey

    ()

Abstract

Rising unemployment and falling living standards are two of the main problems facing economies in transition. In this paper, we present recent developments in labour markets in former communist countries in Europe, and we highlight the distinctive case of Albania, which has the highest levels of unemployment, the largest private sector, and by far the greatest scale of temporary emigration. A simple flow model is used to demonstrate how different time paths of unemployment emerge under different approaches to the reallocation of human capital. The model also analyses the determination of emigration flows, and shows how these flows may in turn influence the rate of growth of the private sector, and the degree of long-term unemployment.

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Bibliographic Info

Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 9617.

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Date of creation: Dec 1996
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Handle: RePEc:ukc:ukcedp:9617

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Keywords: Labour Markets; Speed of Adjustment; Transition; Albania;

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Cited by:
  1. Walsh, Patrick Paul, 2003. "The cyclical pattern of regional unemployment flows in Poland," Economic Systems, Elsevier, vol. 27(2), pages 155-169, June.

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