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Labour Market Segmentation in Central Europe during the First Years of Transition

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  • Ariane Pailhé

Abstract

The labour markets of the centrally planned economies of Central Europe (the former Czechoslovakia, Hungary and Poland) were divided into several segments. Using estimates taken from a two–regime model, we show that segmentation has persisted throughout the first years of systemic change. However, labour market segmentation has evolved to some extent. Firms that used to have priority now coexist alongside new activities within the primary segment (in particular, foreign firms and activities in the banking and financial sector). In this way, labour market segmentation results both in the appearance of new, formal institutions and the persistence of informal institutions left over from the past, owing to the growth in market uncertainty.

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  • Ariane Pailhé, 2003. "Labour Market Segmentation in Central Europe during the First Years of Transition," LABOUR, CEIS, vol. 17(1), pages 127-152, March.
    • Handle: RePEc:bla:labour:v:17:y:2003:i:1:p:127-152
    DOI: 10.1111/1467-9914.00225
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    1. Sonila Danaj & Tibor T Meszmann, 2024. "Weathering intermediated temporary labour mobility: social partners in Central and Eastern Europe after EU enlargement," Transfer: European Review of Labour and Research, , vol. 30(1), pages 67-85, February.
    2. Alfonso Sousa‐Poza, 2004. "Is the Swiss Labor Market Segmented? An Analysis Using Alternative Approaches," LABOUR, CEIS, vol. 18(1), pages 131-161, March.
    3. Christian Manuel Posso, 2010. "Calidad del empleo y segmentación laboral: un análisis para el mercado laboral colombiano 2001-2006," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, February.
    4. Fishman, Ezra & Kimhi, Ayal, 2013. "Is the Israeli Labor Market Segmented? Revisiting the Mixture Regression Model," Discussion Papers 164512, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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