Rapid Labour Reallocation with a Stagnant Unemployment Pool: the Puzzle of the Labor Market in Lithuania PDF Download

Author: Jan Rutkowski
Publisher:
ISBN:
Category :
Languages : en
Pages : 82

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Author: Jan J. Rutkowski
Publisher:
ISBN:
Category : Labor market
Languages : en
Pages : 90

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Book Description

Author: Jan Rutkowski
Publisher: World Bank Publications
ISBN:
Category : Empleo - Lituania
Languages : en
Pages : 92

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Book Description
Lithuania is a transition economy undergoing rapid enterprise restructuring associated with substantial job turnover. At the same time, unemployment in Lithuania is high and of long duration. This presents a puzzle: high job turnover epitomizes labor market flexibility, while high unemployment indicates labor market rigidities. What are the reasons behind this paradox? Why do the unemployed not benefit from job opportunities created by high job turnover, which entails high rates of job creation and hiring? To answer this question, the author looks at three perspectives on labor market flexibility: 1) The macroeconomic perspective-A flexible labor market is one that facilitates full use and efficient allocation of labor resources. 2) The worker perspective-A flexible labor market means ease in finding a job paying a wage adequate to the worker's effort and skills. 3) The employer perspective-A flexible labor market does not unduly constrain the employer's ability to adjust employment and wages to changing market conditions. The author looks at all three dimensions of labor market flexibility by analyzing job reallocation, worker transitions across labor force states, wage distribution, and regulatory constraints faced by employers. He focuses on the issue of job creation and job destruction, using micro level data on all registered firms. He finds that flexibility in one dimension can concur with rigidities in the other. Specifically, employers in Lithuania have a substantial degree of flexibility with employment adjustment coupled with limited flexibility to wage adjustment due to a high statutory minimum wage. The relatively rigid wage structure locks low productivity workers who are preponderant among the unemployed. The low-skilled long-term unemployed have become marginalized and unable to successfully compete for available jobs, while the high job turnover is accounted for largely by job-to-job transitions. As a result, a dynamic labor market coincides with a stagnant unemployment pool.

Author: Chiara Mussida
Publisher: Springer
ISBN: 364255203X
Category : Business & Economics
Languages : en
Pages : 371

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This book focuses on the questions of how territorial differences in productivity levels and unemployment rates arise in the first place and why territorial differences in labor market performance persist over time. Unemployment divergence and unemployment club convergence have been touched on in a large number of works and have recently also been studied using spatial econometric analysis. In this book we aim to develop the debate to include several important new topics, such as: the reasons why structural changes in some sectors cause slumps in some regions but not in others; the extent to which agglomeration factors explain regional imbalances; the degree of convergence / divergence across EU countries and regions; the role of labor mobility in reducing / increasing regional labor market imbalances; the impact of EU and country-level regional policy in stimulating convergence and the (unsatisfactory) role of active labor market policy in stimulating labor supply in the weakest economic areas.

Author: Floro Ernesto Caroleo
Publisher: Springer Science & Business Media
ISBN: 3790821640
Category : Business & Economics
Languages : en
Pages : 340

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Book Description
Floro Ernesto Caroleo and Francesco Pastore This book was conceived to collect selected essays presented at the session on “The Labour Market Impact of the European Union Enlargements. A New Regional Geography of Europe?” of the XXII Conference of the Italian Association of Labour Economics (AIEL). The session aimed to stimulate the debate on the continuity/ fracture of regional patterns of development and employment in old and new European Union (EU) regions. In particular, we asked whether, and how different, the causes of emergence and the evolution of regional imbalances in the new EU members of Central and Eastern Europe (CEE) are compared to those in the old EU members. Several contributions in this book suggest that a factor common to all backward regions, often neglected in the literature, is to be found in their higher than average degree of structural change or, more precisely, in the hardship they expe- ence in coping with the process of structural change typical of all advanced economies. In the new EU members of CEE, structural change is still a consequence of the continuing process of transition from central planning to a market economy, but also of what Fabrizio et al. (2009) call the “second transition”, namely that related to the run-up to and entry in the EU.

Author: Mihails Hazans
Publisher: World Bank Publications
ISBN:
Category : Labor market
Languages : en
Pages : 90

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Book Description
"Latvia has recorded sustained GDP and productivity growth since 1997. Yet unemployment rates, despite gradual decrease, have remained high. Hazans explores the mysteries of unemployment in Latvia. He analyzes labor flows between employment, unemployment, and nonparticipation and finds the following results: * The type of education and the region of residence appear to be the most important determinants of success in finding jobs by the unemployed. * The unemployed from ethnic minorities have lower chances to find a job within a year, other things equal, while the difference between genders is not significant. However, neither ethnicity nor gender seems to matter as far as the transition from employment to unemployment is concerned. * Regional disparities in job destruction seem to be less sizable than disparities in job creation. * The analysis of job search methods by the unemployed indicates that two target groups of state employment policy (young unemployed and long-term unemployed) appear to make relatively little use of the public employment service. The author also looks at the impact of education, age, gender, ethnicity, and regional factors on individual earnings. The relative position of youth and women in Latvian labor market, compared with prime?age men, is less unfavorable than in many other countries. Yet the gender wage gap has increased recently, and the same is true for regional disparities. Beneficiaries of the so-called "new" education system have a relatively high market value, especially with graduates from universities and general secondary schools. Finally, returns to experience seem to be nonexistent for many adult workers without higher education. This paper--a product of the Poverty Reduction and Economic Management Division, Europe and Central Asia Region--is part of a larger effort in the region to understand labor market dynamics"--Abstract.

Author: Jan J. Rutkowski
Publisher: World Bank Publications
ISBN:
Category : Labor market
Languages : en
Pages : 44

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"The paper reviews labor market developments in the transition economies of Europe and Central Asia. It argues that the scarcity of productive job opportunities and the growing labor market segmentation are the two main labor market problems facing the transition economies. In the European transition economies the lack of jobs has led to persistent open unemployment. In the Commonwealth of Independent States (CIS) it has led to hidden unemployment (underemployment and low productivity employment). Unemployment in the European transition economies is supported by the developed social safety net. In contrast, in the CIS for most workers unemployment is not an affordable option. They either stick to their old, unproductive jobs in unrestructured enterprises, or work in the informal sector, or resort to subsistence agriculture. Thus, underemployment in the CIS is a mirror image of unemployment in the European transition economies. Accordingly, the high employment-to-population ratios in many CIS countries do not necessarily signify favorable labor market performance. Instead they often indicate delayed enterprise restructuring, the maintenance of unsustainable jobs in uncompetitive firms, and the existence of a large informal sector as an employer of last resort. Labor market segmentation has been caused by a sharp increase in earnings differentials and the attendant increase in the incidence of low-paid jobs, by the polarization of regional labor market conditions, and finally by the growth of the informal sector offering casual, low-productivity jobs. Labor market segmentation and accompanying inequalities are more pronounced in the CIS than in the European transition economies. "--World Bank web site.

Author: Jan Rutkowski
Publisher: World Bank Publications
ISBN:
Category : Labor market
Languages : en
Pages : 68

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Book Description
Rutkowski seeks to determine the main factors behind poor labor market outcomes in Bulgaria. Unemployment in Bulgaria is high and of long duration. The accumulation of the unemployment stock has been caused by relatively high inflows into unemployment coupled with limited outflows. These features of the Bulgarian labor market are typical of other transition economies in Central Europe and exploring their sources is of broad interest. Rutkowski focuses on determinants of and constraints to job creation. He uses data on job creation and job destruction from a survey of employment in all registered firms. He finds that the source of large inflows into unemployment is intensive enterprise restructuring associated with a high pace of job reallocation. However, job creation falls short of job destruction. Three main factors account for the limited job creation and hiring, and thus for low outflows from unemployment: - The unfriendly business environment, reflected by a low rate of new firm formation, and a relatively small SME (small and medium enterprise) sector. - Labor market rigidities, including excessive hiring and firing costs. - Skill and spatial mismatches brought about by enterprise restructuring, as well as low skills and marginalization of the long-term unemployed who cannot successfully compete for new jobs. The author recommends a three pronged strategy to improve labor market performance: (1) removing bureaucratic constraints to entry and expansion of firms; (2) enhancing labor market flexibility through lowering hiring and firing costs; and (3) improving the educational system so as to equip workers with broad and portable skills. This paper - a product of the Human Development Sector Unit, Europe and Central Asia Region - is part of a larger effort in the region to examine labor market performance and its contribution to economic growth and poverty reduction.

Author: E. Marelli
Publisher: Springer
ISBN: 0230277403
Category : Business & Economics
Languages : en
Pages : 327

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Book Description
This book examines, theoretically and empirically, the key aspects and differences of economic growth. It provides a comprehensive investigation of the numerous features of development in transition countries, covering the last two decades, from the fall of the Berlin Wall in 1989 to the current financial crisis.

Author: Council of Europe
Publisher: Council of Europe
ISBN: 9287161518
Category : Political Science
Languages : en
Pages : 220

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Book Description
Although the work place has become significantly more flexible in the former socialist countries of central and eastern Europe, the realities of their social institutional systems must be taken into account in any development strategies that aim to unite flexibility and security objectives. This volume seeks to contribute to a pan-European reflection on the concepts and issues of labour flexibility and social cohesion.