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Emigration and the Optimal Speed of Transition

Author

Listed:
  • Harry Papapanagos

  • Peter Sanfey

Abstract

This paper presents a model of labour reallocation in a transition economy and analyzes the determinants of the optimal speed of transition. In its simplest form, the model implies that a rapid rather than slow pace of restructuring is preferable in the long run, but an initial period of gradualism may be optimal. The model is extended to consider the effect of emigration flows from the transition country. Our main conclusion is that emigration, by improving the rate of job creation in the private sector and by reducing the burden of unemployment on the government, may lead to an earlier switch to rapid adjustment of labour, and hence to a faster transition to a market economy.

Suggested Citation

  • Harry Papapanagos & Peter Sanfey, 1997. "Emigration and the Optimal Speed of Transition," Studies in Economics 9710, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:9710
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    Cited by:

    1. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    2. G. Martinidis & N. Komninos & E. Carayannis, 2022. "Taking into Account the Human Factor in Regional Innovation Systems and Policies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 849-879, June.
    3. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    4. Ichiro Iwasaki & Taku Suzuki, 2016. "Radicalism Versus Gradualism: An Analytical Survey Of The Transition Strategy Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 807-834, September.
    5. Joanna Tyrowicz & Lucas van der Velde, 2014. "Can We Really Explain Worker Flows in Transition Economies?," Working Papers 2014-28, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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