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The Macedonian Labour Market: What makes it so different?


  • Mojsoska-Blazevski, Nikica
  • Kurtishi, Nedjati


The aim of this paper is to investigate the performance of the Macedonian labour market in the period 2006-2011, as well as to provide a comparative analysis with the countries from the region and the EU. In particular, for over a decade, Macedonian labour market puzzles economic researchers. Despite the expected improvement in the allocative efficiency of the markets (including labour market) in the process of transition to a market economy, the performance of the Macedonian labour market has deteriorated during the transition. Unemployment rate for the population aged 15-64 reached 37.7% in 2005, though has been declining modestly since then to 31.6% in 2011. Participation and employment rates of 64.2% and 43.9%, respectively, are low compared to the peer countries form the region, and even more if compared to the EU countries. This holds even more so for Macedonian females. In this regard, the paper examines the main challenges in the labour market, in general, but also does so for specific groups of workers (differentiated by age, gender анд education). We also calculate the extent of the skill match, as well as the presence of the over/under-education phenomenon (mismatches). Moreover, it empirically tests the determinants of the employment, that is which factors might bring higher employment rates.

Suggested Citation

  • Mojsoska-Blazevski, Nikica & Kurtishi, Nedjati, 2012. "The Macedonian Labour Market: What makes it so different?," MPRA Paper 42045, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:42045

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    References listed on IDEAS

    1. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    2. Boone, Jan & van Ours, Jan C, 2004. "Effective Active Labour Market Policies," CEPR Discussion Papers 4707, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Florian Huber & Magdalena Petrovska, 2015. "Price and Wage Rigidities in the Republic of Macedonia: Survey Evidence from Micro- Level Data," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 49-64.

    More about this item


    Labour market unemployment determinants of employment skill match labour force comparative analysis employment developments;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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