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Rigidities Of The Labour Market In A Transition Economy: The Case Of Romania

Author

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  • Ciupagea, Constantin

    (Institute of World Economy, Romanian Academy, Bucharest)

Abstract

The author proposes an imperfect competition model in order to set the limits, the vicinity in which the “equilibrium” rate of unemployment is bouncing. The whole theoretical framework of this paper was aimed at bringing the macroeconomy model closer to the issue of the existing hysteresis in the economy, which is most obvious on the labour market. The main reason for the presence of hysteresis on the labour market is the huge amount of rigidities that is huge number of distortions. The author founds out that the imperfect competition model seems to be a good macro-tool for analysis and even for predicting the Romanian economy evolution in the short-run.

Suggested Citation

  • Ciupagea, Constantin, 2000. "Rigidities Of The Labour Market In A Transition Economy: The Case Of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 29-57, December.
    • Handle: RePEc:rjr:romjef:v::y:2000:i:3:p:29-57
    as

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    More about this item

    Keywords

    imperfect competition model; hysteresis; Kalman filter; Salter-Swan diagram;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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