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Labor Reallocation and Demographics

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  • Tyrowicz, Joanna

    (University of Warsaw)

  • Van der Velde, Lucas

    (Utrecht University)

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

  • Tyrowicz, Joanna & Van der Velde, Lucas, 2017. "Labor Reallocation and Demographics," IZA Discussion Papers 11249, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11249
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    More about this item

    Keywords

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

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P5 - Political Economy and Comparative 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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