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The transition experience in retrospect: the labour market transformation was vital

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  • Marjan Senjur

Abstract

Looking back on the experience of transition, based on the case study of Slovenia, this article argues that the transformation of the labour market was a major area of transition. It therefore focuses on the topic of the relationship between output, employment, unemployment and inactivity of labour in a transition country. The transition period is from 1980 to 2006. The averages for the whole period 1980-2006 conceal too much. The whole transition period is divided into two sub-periods: the period of the transition crisis and the period of transitional rehabilitation. The thesis is that there were important differences between the two sub-periods as far as the labour market is concerned. Okun's relationships about the responses of employment and unemployment to output changes are valid during both sub-periods. Empirical estimates of the Beveridge relationship and job-matching function do not differ significantly for the first period compared with the second. The conclusion would be that the labour market responded normally during the transition and that the official statistical data do not reflect major systemic changes that the labour market has supposedly experienced during transition.

Suggested Citation

  • Marjan Senjur, 2009. "The transition experience in retrospect: the labour market transformation was vital," Post-Communist Economies, Taylor & Francis Journals, vol. 21(2), pages 175-189.
    • Handle: RePEc:taf:pocoec:v:21:y:2009:i:2:p:175-189
    DOI: 10.1080/14631370902778492
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    1. Arthur M. Okun, 1983. "Economics for Policymaking: Selected Essays of Arthur M. Okun," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650584 edited by Joseph A. Pechman, December.
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    Cited by:

    1. Mondschean, Thomas & Oppenheimer, Margaret, 2011. "Regional Long-term and Short-term Unemployment and Education in Transition: The Case of Poland," The Journal of Economic Asymmetries, Elsevier, vol. 8(2), pages 23-48.

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