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The Labour Market in Macedonia: A Labour Demand Analysis


  • Maja Micevska


This paper examines the labour market in Macedonia, a country with the highest unemployment rate in Europe. I describe labour market institutions and policies during the transition. I also examine job creation and job destruction using firm-level data and I estimate short-term and long-term elasticities of the labour demand. The analysis shows that there are regulatory barriers to the labour market flexibility. I can also conclude that the privatization of socially owned enterprises has failed to promote job creation. Nevertheless, labour market problems seem to stem from factors other than substantial sluggishness of firms in adjusting employment to variations in wages. Copyright 2008 The Author. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2008.

Suggested Citation

  • Maja Micevska, 2008. "The Labour Market in Macedonia: A Labour Demand Analysis," LABOUR, CEIS, vol. 22(2), pages 345-368, June.
  • Handle: RePEc:bla:labour:v:22:y:2008:i:2:p:345-368

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    References listed on IDEAS

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    Cited by:

    1. Jan Babecky & Kamil Galuscak & Lubomir Lizal, 2011. "Firm-Level Labour Demand: Adjustment in Good Times and During the Crisis," Working Papers 2011/15, Czech National Bank, Research Department.
    2. Rahmanov, Ramiz & Qasimov, Asif & Tahirova, Gulzar, 2016. "The Labor Market in Azerbaijan," EconStor Preprints 142694, ZBW - German National Library of Economics.
    3. Bojnec, Stefan, 2011. "Agricultural and Rural Labour Markets in the EU Candidate Countries of Croatia, Former Yugoslav Republic of Macedonia and Turkey," Working Papers 117487, Factor Markets, Centre for European Policy Studies.
    4. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    5. Dimitar Nikoloski & Ljupcho Pechijareski & Goran Pechijareski, 2012. "The role of the alternative labour market adjustment mechanisms in Macedonia during the economic crisis," wiiw Balkan Observatory Working Papers 101, The Vienna Institute for International Economic Studies, wiiw.
    6. Kosovka Ognjenovic & Aleksandra Brankovic, 2012. "Job Creation and Emplozment in a Time of Crisis," Book Chapters, Institute of Economic Sciences.
    7. Janeska, Verica & Bojnec, Stefan, 2011. "Rural Labour Market Developments in the Former Yugoslav Republic of Macedonia," Working Papers 117486, Factor Markets, Centre for European Policy Studies.
    8. Bojnec, Štefan & Janeska, Verica, 2011. "Rural Labour Market Developments in the Former Yugoslav Republic of Macedonia," Factor Markets Working Papers 101, Centre for European Policy Studies.

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