Skip to main content

Emerging Labour Markets

  • Chapter
  • 112 Accesses

Abstract

Chapter 5 provides an overview on the impact of transition on labour markets. It starts with some indicators describing the liberalization of labour relations. It then directs the focus on to the unemployment problem during and, possibly after, transition. The chapter introduces a model that describes the conditions for an initial rise and later fall of unemployment due to an optimal speed of restructuring the state-owned sector: the model of the optimal speed of transition (OST). Two macroeconomic concepts are used to indirectly assess the relation between market rigidities and unemployment — the Beveridge curve and Okun’s law. Both concepts suggest that the present high unemployment in countries should no longer be understood as a transitional problem or a problem of too rigid markets. It is rather a matter of too little economic growth.

Keywords

  • Labour Market
  • Unemployment Rate
  • Shadow Economy
  • Transition Country
  • Active Labour Market Policy

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1057/9780230626584_6
  • Chapter length: 16 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   99.00
Price excludes VAT (USA)
  • ISBN: 978-0-230-62658-4
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   135.00
Price excludes VAT (USA)
Hardcover Book
USD   140.00
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References and further reading

  • Aghion, P. and O. J. Blanchard (1994). ‘On the speed of transition in Central Europe’, in Stanley Fischer and Julio Rotemberg, (eds), NBER Macroeconomics Annual 1994, 283–320.

    Google Scholar 

  • Castanheira, M. and G. Roland (2000) ‘The optimal speed of transition: a general equilibrium analysis’, International Economic Review 41 (1), 219–39.

    CrossRef  Google Scholar 

  • Cazes, S. (2002). ‘Do labour market institutions matter in transition economies: an analysis of labour market flexibility in the late nineties’, International Institute for Labour Studies, Discussion Paper 140.

    Google Scholar 

  • Döpke, J. (2001) ‘The “employment intensity” of growth in Europe’, Kiel Working Paper 1021, Kiel Institute of World Economics.

    Google Scholar 

  • European Bank for Reconstruction and Development (EBRD) (2000) Transition Report 2000 (London: EBRD).

    Google Scholar 

  • European Bank for Reconstruction and Development (EBRD) (2004) Transition Report 2004 (London: EBRD).

    Google Scholar 

  • EU Commission (2004) Employment in Europe 2004. Recent Trends and Prospects, manuscript (August 2004), Brussels, available at http://europa.eu.int/comm/employment_social/employment_analysis/eie/eie2004_forew_toc_sum_en.pdf.

    Google Scholar 

  • Forteza, A. and M. Rama (1999) ‘Labor market “rigidity” and the success of economic reforms across more than hundred countries’, World Bank Policy Research Working Paper 2521.

    Google Scholar 

  • Gabrisch. and H. Buscher (2005) ‘Unemployment dynamics in new EU member countries: a test for Okun’s law’, IWH-Discussion Papers 5.

    Google Scholar 

  • Garibaldi, P. and Z. Brixiova (1997) ‘Labor market institutions and unemployment dynamics in transition economies’, IMF Working Paper 97/137 (Washington, DC: IMF).

    Google Scholar 

  • Haltiwanger, J., H. Lehmann and K. Terrell (2003), ‘Job creation and job destruction in transition countries’, Economics of Transition 11(2), 205–219.

    CrossRef  Google Scholar 

  • Izyumov, A. and J. Vahaly (2002) ‘The unemployment-output tradeoff in transition economies: does Okun’s law apply?’, Economics of Planning 35 (4), 317–31.

    CrossRef  Google Scholar 

  • Landesmann, M., H. Vidovic and T. Ward (2005) ‘Economic restructuring and labour market developments in the new EU member states’, WIIW-Research Reports, No 312 (Vienna: Institute for Comparative Economic Studies).

    Google Scholar 

  • Nesporova, A. (2002) ‘Why unemployment remains so high in Central and Eastern Europe’, Employment Paper 2002/43 (Geneva: ILO).

    Google Scholar 

  • OECD (2003) OECD Employment Outlook: 2003. Towards More and Better Jobs, Chapter 1 (Paris: OECD).

    CrossRef  Google Scholar 

  • Okun, A. M. (1962) ‘Potential GDP: its measurement and significance’, Proceedings of the Business and Economics Statistics Section, American Statistical Association, 98–103.

    Google Scholar 

  • Prachowny, M. F. J. (1993) ‘Okun’s law: theoretical foundations and revised estimates’, The Review of Economics and Statistics 75, 331–36.

    CrossRef  Google Scholar 

  • UN-ECE (2005) Economic Survey of Europe 1 (Geneva: United Nations Economic Commission for Europe).

    Google Scholar 

  • WIIW (Wiener Institut für Internationale Wirtschaffs Vergleiche) (various dates) Monthly Data Bank (The Vienna Institute for Comparative Economic Studies) Vienna.

    Google Scholar 

Download references

Authors

Copyright information

© 2006 Hubert Gabrisch and Jens Hölscher

About this chapter

Cite this chapter

Gabrisch, H., Hölscher, J. (2006). Emerging Labour Markets. In: The Successes and Failures of Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626584_6

Download citation