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Labour Markets in Albania and Other Transition Economies: Theory and Recent Developments

Author

Listed:
  • Elida Cuka
  • Harry Papapanagos

    ()

  • Natasha Polo
  • Peter Sanfey

    ()

Abstract

Rising unemployment and falling living standards are two of the main problems facing economies in transition. In this paper, we present recent developments in labour markets in former communist countries in Europe, and we highlight the distinctive case of Albania, which has the highest levels of unemployment, the largest private sector, and by far the greatest scale of temporary emigration. A simple flow model is used to demonstrate how different time paths of unemployment emerge under different approaches to the reallocation of human capital. The model also analyses the determination of emigration flows, and shows how these flows may in turn influence the rate of growth of the private sector, and the degree of long-term unemployment.

Suggested Citation

  • Elida Cuka & Harry Papapanagos & Natasha Polo & Peter Sanfey, 1996. "Labour Markets in Albania and Other Transition Economies: Theory and Recent Developments," Studies in Economics 9617, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:9617
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    Cited by:

    1. Walsh, Patrick Paul, 2003. "The cyclical pattern of regional unemployment flows in Poland," Economic Systems, Elsevier, vol. 27(2), pages 155-169, June.

    More about this item

    Keywords

    Labour Markets; Speed of Adjustment; Transition; Albania;

    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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