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Efficiency and Distributional Effects of the Two-Tracked Labor Market Institutions in Albania

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  • Drishti, Elvisa
  • Kalaj, Ermira Hoxha
  • Kopliku, Bresena Dema

Abstract

This study examines the efficiency and distributional effects of selected labor market institutions in Albania, a rather underresearched country. An initial overview of the postcommunist developments articulates why Albania has the poorest labor market performance among other South East European countries. Using a set of mixed qualitative and descriptive quantitative methods we find evidence of inefficient segmental effects and a predatory structure of labor market institutions which noticeably diverge from the efficient institutions' point of reference. The institutional/welfare regime at the cross-national level points out at a relationship between the labor market institutional framework and labor market performance, as measured by unemployment. At the country level, a disproportional relationship between the "de jure" labor market regulation and unemployment is identified, which is also moderated by the interaction between labor market and economic institutions.

Suggested Citation

  • Drishti, Elvisa & Kalaj, Ermira Hoxha & Kopliku, Bresena Dema, 2021. "Efficiency and Distributional Effects of the Two-Tracked Labor Market Institutions in Albania," GLO Discussion Paper Series 837, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:837
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