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Why is Unemployment So High in Bulgaria?
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 restru...
Rapid Labor Reallocation with a Stagnant Unemployment Pool
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 e...
Enhancing Job Opportunities
Annotation This title looks at ways governments can promote the creation of more and better jobs in the region. It addresses the question of why labour market outcomes have been disappointing during the transition, and suggests policy interventions to promote firms' investment, job creation and economic development.
Welfare and the Labor Market in Poland
This report assesses the changes in social welfare and policy that have taken place in Poland during the economic transition. It tests the main hypotheses concerning changes in the role of the welfare state, workings of the labor market, the distributional consequences of transition, and more generally about the winners and losers in transition. Chapter one examines trends in social expenditure during economic transition. Chapter two focuses on changes in the labor market, including emerging risks and opportunities. Chapter three explores distributional consequences of transition.
Labor Market Developments During Economic Transition
"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 sti...
Firms, Jobs, and Employment in Moldova
Despite low open unemployment, labor market outcomes are unsatisfactory in Moldova. Employment is low and job opportunities are scarce. This paper examines labor market performance in Moldova by focusing on firm dynamics. It finds that the low level of employment in Moldova is due to the low rate of firm entry and the low rate of job creation in existing firms. Although the rate of job destruction is high, this is typical of transition economies and is a problem only because it is not coupled with a commensurate rate of job creation. Firm exit is limited and thus is not an important factor behind job losses. The only sector of the economy that creates jobs on a net basis is that of de novo p...
Employment and Poverty in the Philippines
This study analyzes labor market performance in the Philippines from the perspective of workers' welfare. It argues that pervasive in-work poverty is the main challenge facing labor policy. Poverty is primarily due to low earning capacity of the poor and to their limited access to regular and productive jobs. Behind these are the two interrelated root causes of in-work poverty--low education of the poor, and the scarcity of productive job opportunities. The labor market is segmented into “good” and “bad” jobs, with the poor working in the latter. They hold jobs that are informal, temporary or casual, and low-paid. Widespread informality means that the poor neither benefit from the mi...
Changes in the Wage Structure During Economic Transition in Central and Eastern Europe
World Bank Technical Paper No. 336. Presents the results of consultative surveys undertaken in 36 rural and urban communities across Nigeria. The study examines the effectiveness and accountability of local institutions in local decisionmaking and participation, as well as some common limitations such as the narrowness of membership and goals and their limited technical and managerial capacities.
