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Labor reallocation and demographics

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  • Joanna Tyrowicz

    (Institute for Labour Law and Industrial Relations in the European Union IAAEU), Trier University)

  • Lucas van der Velde

    (Group for Research in Applied Economics and Warsaw School of Economics)

Abstract

We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker flows between jobs in different industries are rare relative to the demographic flows of youth entry and elderly exit. The same applies to the flows between state-owned enterprises and private firms. In fact, evidence suggest that changes in the demand for labor were accommodated mostly through demographic flows, with a smaller role left for job transitions. We also show that the speed of changing the ownership structure in the economy has driven exits to retirement, in particular the early exits.

Suggested Citation

  • Joanna Tyrowicz & Lucas van der Velde, 2018. "Labor reallocation and demographics," IAAEU Discussion Papers 201802, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  • Handle: RePEc:iaa:dpaper:201802
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    Cited by:

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    6. de Pinto Marco & Goerke Laszlo, 2019. "Efficiency Wages in Cournot-Oligopoly," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(4), pages 1-13, October.
    7. Joanna Tyrowicz & Magdalena Smyk, 2019. "Wage Inequality and Structural Change," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 503-538, January.
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    More about this item

    Keywords

    hirings; separations; transition; worker flows; unemployment; retirement;
    All these keywords.

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P5 - Economic Systems - - Comparative Economic Systems
    • D2 - Microeconomics - - Production and Organizations
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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