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Central and East European Labour Markets in Transition: Developments, Causes, and Cures

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  • Franz, Wolfgang

Abstract

The main questions addressed in this paper are: First, how did labour markets in the Visegrad countries react to the breakdown of a command economy and the transformation to a market economy? Second, which way ahead is likely, or to put it differently, what should be done now to improve conditions in the labour market in these countries? A comprehensive survey of labour market developments in each country under consideration is offered at some length. Special emphasis is then put on the dynamics of employment and unemployment in order to identify key issues for the sources of the malfunctioning of these labour markets. The paper then looks at the wage formation process including institutional settings and income policies, active and passive labour market policies, and the structure of employment and output.

Suggested Citation

  • Franz, Wolfgang, 1995. "Central and East European Labour Markets in Transition: Developments, Causes, and Cures," CEPR Discussion Papers 1132, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1132
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    References listed on IDEAS

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    1. Funke, Norbert, 1993. "Timing and sequencing of reforms: Competing views," Kiel Working Papers 552, Kiel Institute for the World Economy (IfW).
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    3. Welfe, Aleksander, 1996. "The Price-Wage Inflationary Spiral in Poland," Economic Change and Restructuring, Springer, vol. 29(1), pages 33-50.
    4. Gottvald, J & Pedersen, P J & Simek, M, 1999. "The Czech Labour Market in Transition: Evidence from a Micro Study," Bulletin of Economic Research, Wiley Blackwell, vol. 51(1), pages 39-65, January.
    5. Malinvaud,Edmond, 1994. "Diagnosing Unemployment," Cambridge Books, Cambridge University Press, number 9780521445337, April.
    6. Blanchard, Olivier Jean, 1994. "Transition in Poland," Economic Journal, Royal Economic Society, vol. 104(426), pages 1169-1177, September.
    7. Tito Boeri, 1994. ""Transitional" unemployment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 1-25, March.
    8. Szekely,Istvan & Newbery,David M. G., 2008. "Hungary: An Economy in Transition," Cambridge Books, Cambridge University Press, number 9780521057547, April.
    9. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
    10. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    11. Welfe, Aleksander, 1994. "The price-wage inflationary spiral: The mixed economic case," Discussion Papers 13, University of Konstanz, Center for International Labor Economics (CILE).
    12. Portes, Richard, 1994. "Transformation Traps," Economic Journal, Royal Economic Society, vol. 104(426), pages 1178-1189, September.
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    Citations

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    Cited by:

    1. Ansgar Belke & Martin Hebler, 2000. "EU enlargement and labour markets in the CEECs," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 35(5), pages 219-230, September.
    2. Steiner, Viktor & Kwiatkowski, Eugeniusz, 1995. "The Polish labour market in transition," ZEW Discussion Papers 95-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Puhani, Patrick A, 1999. "Public Training and Outflows from Unemployment: An Augmented Matching Function Approach on Polish Regional Data," CEPR Discussion Papers 2244, C.E.P.R. Discussion Papers.
    4. Ansgar Belke & Martin Hebler, 2002. "Towards a European Social Union: Impacts on Labor Markets in the Acceding Countries," Constitutional Political Economy, Springer, vol. 13(4), pages 313-335, December.
    5. Belke, Ansgar & Gocke, Matthias & Hebler, Martin, 2005. "Institutional uncertainty and European Social Union: Impacts on job creation and destruction in the CEECs," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 345-354, April.
    6. Sandrine Cazes & Stéfano Scarpetta, 1995. "Caractéristiques individuelles, marchés du travail locaux et chômage en Pologne et en Bulgarie : l'apport des micro-données," Revue de l'OFCE, Programme National Persée, vol. 54(1), pages 105-145.
    7. Puhani, Patrick A., 1999. "Estimating the effects of public training on Polish unemployment by way of the augmented matching function approach," ZEW Discussion Papers 99-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Brauer, Holger & Falk, Martin & Raiser, Martin, 1996. "Labour markets in Poland and Hungary five years from the start of transition: Evidence from monthly data," Kiel Working Papers 742, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    Employment; Labour Market; Transformation Countries; Unemployment; Wages;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform

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