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Changing composition of human capital The Czech Republic, Hungary and Poland1

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  • Byeongju Jeong
  • Michal Kejak
  • Viatcheslav Vinogradov

Abstract

We show that business education/occupations have expanded and that technical education/occupations have contracted in the Czech Republic and Poland since 1990. We interpret these changes as an adjustment necessary for their transition to a market economy. We do not find the same pattern in Hungary, which we attribute to the earlier timing of its transition. We construct an aggregate model in which labour reallocates in response to changing demand structure. When calibrated with the Czech and Polish data, the model generates a large movement of workers with technical education and experience into business occupations in the early 1990s. The discounted sum of output loss due to the gap between the demand structure and the composition of existing human capital amounts to between 8 and 40 percent of 1990 GDP.

Suggested Citation

  • Byeongju Jeong & Michal Kejak & Viatcheslav Vinogradov, 2008. "Changing composition of human capital The Czech Republic, Hungary and Poland1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 247-271, April.
    • Handle: RePEc:bla:etrans:v:16:y:2008:i:2:p:247-271
    DOI: 10.1111/j.1468-0351.2008.00320.x
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    References listed on IDEAS

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    1. Ariel Fiszbein, 2001. "Decentralizing Education in Transition Societies : Case Studies from Central and Eastern Europe," World Bank Publications - Books, The World Bank Group, number 13886.
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    Cited by:

    1. Spagat, Michael, 2006. "Human capital and the future of transition economies," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 44-56, March.
    2. Blštáková Jana & Karoliny Mártonné & Csapó Ildikó & Szobi Ádám & Poór József, 2018. "Practices of Human Resource Management in Light of Cranet Empirical Research 2015–2016," Journal of Intercultural Management, Sciendo, vol. 10(1), pages 101-142, March.
    3. Mysíková Martina, 2016. "Educational mismatch in the Czech Labour Market," Review of Economic Perspectives, Sciendo, vol. 16(2), pages 103-120, June.
    4. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, vol. 33(1), pages 45-59, March.
    5. Evangelia Vourvachaki & Vahagn Jerbashian & : Sergey Slobodyan, 2014. "Specific and General Human Capital in an Endogenous Growth Model," CERGE-EI Working Papers wp520, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Savina Finardi & Jakub Fischer, 2017. "The estimation of Mincer function in conditions of the Czech republic [Odhad Mincerovy funkce v podmínkách České republiky]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2017(3), pages 57-68.

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