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Labour market reforms in the context of political power theory: The case of Slovenia


  • Mitja Cok

    () (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Polona Domadenik

    (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Tjasa Redek

    (University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia)

  • Miroslav Verbic

    (Institute for Economic Research, Ljubljana, Slovenia)


The rigidity of labour market has several important negative economic consequences: it stifles job creation, increases discrimination of those that it is actually aimed at protecting (young, women and the low-skilled), hurts the unemployed, slows down economic restructuring and damages its global competitiveness. But reforms are slow and often marked with disputes among partners in the collective bargaining process. Afraid of social security loss, unions usually oppose the re- form, while governments usually give in to the union pressures and negative image of reform consequences created by unions and assisted by media. The characteristics of the labour market and labour market reform with respect to bargaining among power groups are examined both theoretically and empirically in the case of Slovenia.

Suggested Citation

  • Mitja Cok & Polona Domadenik & Tjasa Redek & Miroslav Verbic, 2009. "Labour market reforms in the context of political power theory: The case of Slovenia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 27(1), pages 57-82.
  • Handle: RePEc:rfe:zbefri:v:27:y:2009:i:1:p:57-82

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    References listed on IDEAS

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    Cited by:

    1. Miroslav Verbič & Boris Majcen & Olga Ivanova & Mitja Čok, 2011. "R&D and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(1), pages 67-89, March.

    More about this item


    labour market flexibility; re-election process; reforms; Slovenia;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies


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