Labour Hoarding and Future Open Unemployment in Eastern Europe: The Case of Polish Industry
Labour hoarding ensures that unemployment remains disguised or mostly disguised in socialist economies. Labour hoarding was prevalent in the 1960s after the absorption of post-capitalist labour reserves. The pattern was similar in almost all East European Central Planned Economies (CPEs), but the nature of labour hoarding was different from market economies, where it is usually confined to smoothing adjustments over the business cycle. The paper contains an estimate of labour hoarding in Polish industry based on a Cobb-Douglas production function of the type employed earlier by Denison. A part of the residual factor of labour productivity growth that reflects underutilization of labour is used to derive estimates for labour hoarding. The results show a huge increase in labour hoarding (disguised unemployment rate) in Polish industry from less than 5 per cent of the labour force in the late 1960s up to more than 25 per cent in the late 1980s. The main conclusion is that as a result of western-type stabilization programmes, future open unemployment in Poland (and probably in other former CPEs) could be much bigger than government expectations unless various institutional changes supporting new openings and structural changes are initiated. The study also shows that a shifting out of the Beveridge curve (a typical phenomenon in market economics lately) can be observed in the Polish economy if the disguised unemployment rate is taken into account.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Jul 1990|
|Contact details of provider:|| Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP|
When requesting a correction, please mention this item's handle: RePEc:cep:cepdps:dp0006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.