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Skill Acquisition and Firm Creation in Transition Economies

Author

Listed:
  • Ms. Zuzana Brixiova
  • Wenli Li
  • Tarik Yousef

Abstract

The transition from plan to market has hinged on the development of a dynamic private sector that would serve as the engine of growth and employment creation. This paper examines the link between the availability of skilled workers and the creation of new private firms. Using a dynamic search model, it shows how the lack of skilled workers inhibits entrepreneurship and depresses the rate of firm creation, slowing the recovery of aggregate output and labor productivity during the transition. The paper also shows how policies designed to encourage skill acquisition by workers have a positive impact on the economy.

Suggested Citation

  • Ms. Zuzana Brixiova & Wenli Li & Tarik Yousef, 1999. "Skill Acquisition and Firm Creation in Transition Economies," IMF Working Papers 1999/130, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:1999/130
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    Citations

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    Cited by:

    1. Zuzana Brixiova & Vera Volchok, 2005. "Labor Market Trends and Institutions in Belarus," William Davidson Institute Working Papers Series wp777, William Davidson Institute at the University of Michigan.
    2. Volkhart Vincentz & Michael Knogler, 2003. "Szenarien der mittelfristigen Konvergenz der EU-Beitrittsländer Polen, Slowakische Republik und Ungarn," Working Papers 244, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    3. Chung-Ming Lau & Lowell W. Busenitz, 2001. "Growth Intentions of Entrepreneurs in a Transitional Economy: The People's Republic of China," Entrepreneurship Theory and Practice, , vol. 26(1), pages 5-20, October.
    4. Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2003. "Socialism, Capitalism, and Transition - Coordination of Economic Relations and Output Performance," Paul Frijters Discussion Papers 2003, School of Economics and Finance, Queensland University of Technology.
    5. Duranton, Gilles & Haniotis, Toni, 2004. "A comparison between economic systems with an application to transition," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2125-2157, August.
    6. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, vol. 33(1), pages 45-59, March.
    7. Ernesto Hernández-Catá, 2001. "The Fall and Recovery of the Cuban Economy in the 1990's; Mirage or Reality?," IMF Working Papers 2001/048, International Monetary Fund.
    8. Michael Knogler, 2002. "Arbeitsmarktpolitische Herausforderungen in den Ländern der EU-Beitrittskandidaten," Working Papers 235, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

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