This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Transition with Labour Supply

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Tito Boeri

Additional information is available for the following registered author(s):

Abstract

The literature on the economics of transition has devoted little, if any, attention to labour supply. We show in this paper that, properly accounting for labour supply adjustments permit to understand some of the most puzzling features of transition, such as the output fall, the strikingly low workers' mobility associated with dramatic changes in the structure of employment, the presence of many job leavers as opposed to job losers, the frequency of direct shifts of workers from one job to another without intervening unemployment spells, and the role played by flows to inactivity in the dis-employment process. Our models show that transitional unemployment involves significant locking-in effects at the micro-level, and unemployment persistence at the aggregate level. It also suggests that, rather than starting with generous non-employment benefits and the subsequently cutting them down, as generally prescribed by the Optimal Speed of Transition literature and actually done by most countries of the region, the right sequence should have been the other way round. The paper sheds some light on other design features of unemployment benefits, suitable for economies undergoing rapid structural change.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp274.pdf
File Format:
File Function:
Download Restriction: no

Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 274.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: pages
Date of creation: 01 Dec 1999
Date of revision:
Handle: RePEc:wdi:papers:1999-274

Contact details of provider:
Postal: 724 E. University Ave. Wyly Hall, Floor 1, Ann Arbor, Michigan 48109-1234
Phone: 734 615 4566
Fax: (734) 763-5850
Email:
Web page: http://www.wdi.umich.edu
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Patricia Loh).

Related research
Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dewatripont, M & Roland, G, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Blackwell Publishing, vol. 59(4), pages 703-30, October. [Downloadable!] (restricted)
  2. Campos, N.F., 1999. "Back to the Future: The Growth Prospects of Transition Economies Reconsidered," Papers 146, Commission of the EEC - Ecofin, Country Studies.
    Other versions:
  3. van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-55, April. [Downloadable!] (restricted)
  4. Simeon Djankov & Gerhard Pohl, 1997. "Restructuring of Large Firms in Slovakia," William Davidson Institute Working Papers Series 73, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  5. Boeri, Tito & Burda, Michael C, 1995. "Active Labour Market Policies, Job Matching and the Czech Miracle," CEPR Discussion Papers 1302, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Gavin, M., 1993. "Unemployment and the Economics of Gradualist Policy Reform," Discussion Papers 1993_07, Columbia University, Department of Economics.
  7. Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition Central Europe," NBER Working Papers 4736, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Boeri, Tito, 1998. "Enforcement of Employment Security Regulations, On-The-Job Search and Unemployment Duration," CEPR Discussion Papers 1850, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Stanley Fischer & Ratna Sahay & Carlos A. Végh Gramont, 1998. "How Far is Eastern Europe from Brussels?," IMF Working Papers 98/53, International Monetary Fund.
  10. Schaffer, Mark E., 1998. "Do Firms in Transition Economies Have Soft Budget Constraints? A Reconsideration of Concepts and Evidence," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 80-103, March. [Downloadable!] (restricted)
  11. Blanchard, Olivier & Jimeno, Juan F, 1995. "Structural Unemployment: Spain versus Portugal," American Economic Review, American Economic Association, vol. 85(2), pages 212-18, May. [Downloadable!] (restricted)
  12. Daniel Munich & Jan Svejnar & Katherine Terrell, 1999. "Worker-firm Matching and Unemployment in Transition to a Market Economy: (Why) Are the Czechs More Successful than Others?," CERGE-EI Working Papers wp141, The Center for Economic Research and Graduate Education - Economic Institute, Prague. [Downloadable!]
    Other versions:
  13. Djankov, Simeon & Pohl, Gerhard, 1997. "The restructuring of large firms in Slovakia," Policy Research Working Paper Series 1758, The World Bank. [Downloadable!]
  14. Rodrik, Dani, 1995. "The Dynamics of Political Support for Reform in Economies in Transition," CEPR Discussion Papers 1115, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  15. Tito Boeri & Christopher J. Flinn, 1999. "Returns to Mobility in the Transition to a Market Economy," William Davidson Institute Working Papers Series 217, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  16. Paolo Mauro & Eswar Prasad & Antonio Spilimbergo, 1999. "Perspectives on Regional Unemployment in Europe," IMF Occasional Papers 177, International Monetary Fund.
  17. Richard Jackman & C Pauna, 1997. "Labour Market Policy and the Reallocation of Labour Across Sectors," CEP Discussion Papers dp0338, Centre for Economic Performance, LSE. [Downloadable!]
  18. Blanchard, Olivier Jean & Diamond, Peter, 1992. "The Flow Approach to Labor Markets," American Economic Review, American Economic Association, vol. 82(2), pages 354-59, May. [Downloadable!] (restricted)
    Other versions:
  19. Boeri, Tito, 1997. "Labour-Market Reforms in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 126-40, Summer.
  20. Derek C. Jones & Takao Kato, 1998. "Chief Executive Compensation During Early Transition: Further Evidence from Bulgaria," William Davidson Institute Working Papers Series 146, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  21. Wright, Randall, 1986. "The redistributive roles of unemployment insurance and the dynamics of voting," Journal of Public Economics, Elsevier, vol. 31(3), pages 377-399, December. [Downloadable!] (restricted)
  22. Zuzana Brixiova & Pietro Garibaldi, 1997. "Labor Market Institutions and Unemployment Dynamics in Transition Economies," IMF Working Papers 97/137, International Monetary Fund.
  23. Boeri, Tito & Scarpetta, Stefano, 1996. "Regional mismatch and the transition to a market economy," Labour Economics, Elsevier, vol. 3(3), pages 233-254, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Katalin Balla & János Köllo & András Simonovits, 2006. "Transition with Heterogeneous Labor," IZA Discussion Papers 2179, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Ekaterina Kalugina & Boris Najman, 2004. "Travail et pauvreté en Russie : évaluations objectives et perceptions subjectives," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00266727_v1, HAL. [Downloadable!]
  3. Patrick Paul Walsh, 2000. "Regional Unemployment in Poland: A Legacy of Central Planning," LICOS Discussion Papers 9100, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  4. Bonin, Holger & Euwals, Rob, 2001. "Participation Behavior of East German Women after German Unification," IZA Discussion Papers 413, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Mihails Hazans, 2007. "Looking for the workforce: the elderly, discouraged workers, minorities, and students in the Baltic labour markets," Empirica, Springer, vol. 34(4), pages 319-349, September. [Downloadable!] (restricted)
    Other versions:
  6. Lubomir Lizal & Evzen Kocenda, 2000. "Corruption and Anticorruption in the Czech Republic," William Davidson Institute Working Papers Series 345, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  7. Maxim Bouev, 2004. "Diverging Paths: Transition in the Presence of the Informal Sector," William Davidson Institute Working Papers Series 2004-689, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  8. Boriss Siliverstovs & Dmitri Koulikov, 2003. "Labor Supply of Married Females in Estonia," Discussion Papers of DIW Berlin 321, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  9. Jurajda, Stepán & 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). [Downloadable!]
    Other versions:
  10. Frederic Chabellard, 2001. "Dollarization of Liabilities in Non-tradable Goods Sector," William Davidson Institute Working Papers Series 380, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  11. Jekaterina Dmitrijeva & Mihails Hazans, 2005. "A stock-flow matching approach to evaluation of public training program in a high unemployment environment," Labor and Demography 0506007, EconWPA. [Downloadable!]
    Other versions:
  12. 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 Stephen M. Ross Business School. [Downloadable!]
  13. Vlad Ivanenko, 2001. "Effective Tax Rates in Transition," William Davidson Institute Working Papers Series 378, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  14. Kupets Olga, 2005. "Determinants of unemployment duration in Ukraine," EERC Working Paper Series 05-01e, EERC Research Network, Russia and CIS. [Downloadable!]
  15. Fiona Duffy & Patrick Paul Walsh, 2000. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," William Davidson Institute Working Papers Series 364, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  16. Alan A. Bevan & Saul Estrin, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," William Davidson Institute Working Papers Series 342, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  17. John Giles & Albert Park & Fang Cai, 2003. "How has Economic Restructuring Affected China’s Urban Workers?," William Davidson Institute Working Papers Series 2003-628, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  18. Janos Kollo, 2001. "The patterns of non-employment in Hungary's least developed regions," Budapest Working Papers on the Labour Market 0101, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
Statistics
Access and download statistics

Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.

This page was last updated on 2009-11-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.