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Labour-Market Reforms in Transition Economies

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  • Boeri, Tito

Abstract

Several lessons can be drawn from the natural experiments of central and eastern European countries with labour-market policies. Two of them are particularly relevant also for OECD countries. First, it is not wise to reduce the duration of unemployment benefits when the length of unemployment spells are on the rise, unless (i) unemployment is still low and there is the administrative capacity to implement active labour-market policies on a wide scale or (ii) there are income support schemes of the last resort in place and an administration capable of cost-effectively enforcing work-tests for those falling off unemployment benefit compensation rolls. The second and perhaps more positive lesson in the light of the above is that it is possible to transform institutions and create an efficient policy delivery mechanism within a short time span. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Boeri, Tito, 1997. "Labour-Market Reforms in Transition Economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(2), pages 126-140, Summer.
    • Handle: RePEc:oup:oxford:v:13:y:1997:i:2:p:126-40
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    Cited by:

    1. Lubyova, Martina & van Ours, Jan C., 1999. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 90-112, March.
    2. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    3. Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan.
    4. Knoef, Marike & van Ours, J.C., 2014. "How to Stimulate Single Mothers on Welfare to Find a Job : Evidence from a Natural Experiment," Other publications TiSEM e1759059-2c55-4269-8131-1, Tilburg University, School of Economics and Management.
    5. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March.
    6. Vera A. Adamchik & Josef C. Brada & Arthur E. King, 2009. "Are Transition Economy Workers Underpaid?," Working Papers 278, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    7. van Ours, J.C. & Lubyova, M., 1999. "Effects of active labour market programmes on the transition rate from unemployment into regular jobs in the Slovak Republic," Other publications TiSEM 742d0ca3-611a-4b55-a8c4-8, Tilburg University, School of Economics and Management.
    8. Milan Vodopivec, 2004. "Income Support for the Unemployed : Issues and Options," World Bank Publications - Books, The World Bank Group, number 14922.
    9. Miguel A. León‐Ledesma & Peter McAdam, 2004. "Unemployment, Hysteresis And Transition," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 377-401, August.
    10. Jan C. van Ours, 2000. "Do Active Labor Market Policies Help Unemployed Workers to Find and Keep Regular Jobs?," William Davidson Institute Working Papers Series 289, William Davidson Institute at the University of Michigan.
    11. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series 327, William Davidson Institute at the University of Michigan.
    12. Marike Knoef & Jan C. van Ours, 2016. "How to stimulate single mothers on welfare to find a job: evidence from a policy experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1025-1061, October.
    13. Spartak Keremidchiev, 2008. "Policies for Restructuring of the State Firms in Sector Water Supply and Sewage," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 66-111.
    14. Bocean, Claudiu George, 2007. "The Impact of Active Labour Market Policies in Romania," MPRA Paper 10397, University Library of Munich, Germany.
    15. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 189-203.
    16. Antonio Estache & Elena Ianchovichina & Robert Bacon & Ilhem Salamon, 2013. "Infrastructure and Employment Creation in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 12237.
    17. Feldmann Horst, 2002. "Labour Market Policies in Transition Countries: An Austrian-Economic Assessment," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(4), pages 1-27, December.
    18. Stefan Bojnec, 2003. "Wage formation during economic transformation: macroeconomic facts and firm survey evidence from Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 15(4), pages 571-593.
    19. Raul Eamets & Kadri Ukrainski, 2000. "Hidden Unemployment in Estonia: Experience from the Early Years of Transition (1989-1996)," Post-Communist Economies, Taylor & Francis Journals, vol. 12(4), pages 463-484.
    20. Milan Vodopevic, 2004. "Comparing Unemployment Insurance and Unemployment Assistance," World Bank Publications - Reports 11811, The World Bank Group.
    21. Irena Zareva, 2008. "Main Challenges to the Educational and Professional Qualification of the Labor Force in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 24-65.

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