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Does Eurosclerosis Matter? Institutional Reform and Labor Market Performance in Central and Eastern Europe

Author

Listed:
  • Michelle Riboud
  • Carolina Sánchez-Páramo
  • Carlos Silva-Jáuregui

Abstract

This paper examines the labor market dynamics of six CEE countries over the last 10 years, paying special attention to the nature of labor market institutions these countries have adopted and their impact on labor market performance. This paper finds that, compared to EU countries, CEE countries fall in the "middle" of the flexibility scale regarding their employment protection legislation. While the effect of labor market institutions is hard to uncover, it should not be disregarded and they are likely to play an important role in the coming years.

Suggested Citation

  • Michelle Riboud & Carolina Sánchez-Páramo & Carlos Silva-Jáuregui, 2002. "Does Eurosclerosis Matter? Institutional Reform and Labor Market Performance in Central and Eastern Europe," World Bank Publications - Books, The World Bank Group, number 14093.
    • Handle: RePEc:wbk:wbpubs:14093
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    References listed on IDEAS

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    Cited by:

    1. Andrzej Adamczyk & Tomasz Tokarski & Robert W. Włodarczyk, 2006. "Bezrobocie transformacyjne w Europie Środkowej i Wschodniej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 1-33.
    2. Berger, Helge & Hefeker, Carsten, 2005. "One Country, One Vote? Labor Market Structure and Voting Rights in the ECB," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 672-687.
    3. Maja Micevska, 2008. "The Labour Market in Macedonia: A Labour Demand Analysis," LABOUR, CEIS, vol. 22(2), pages 345-368, June.
    4. Mitja Cok & Polona Domadenik & Tjasa Redek & Miroslav Verbic, 2009. "Labour market reforms in the context of political power theory: The case of Slovenia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 27(1), pages 57-82.
    5. Orban, Gabor & Szapary, Gyorgy, 2004. "The Stability and Growth Pact from the perspective of the new member states," Journal of Policy Modeling, Elsevier, vol. 26(7), pages 839-864, October.
    6. Abby Innes, 2014. "JCMS Special Issue 2014: Eastern Enlargement Ten Years On: Transcending the East-West Divide? Guest Editors: Rachel A. Epstein and Wade Jacoby," Journal of Common Market Studies, Wiley Blackwell, vol. 52(1), pages 88-104, January.
    7. Zsolt Darvas & György Szapáry, 2008. "Euro Area Enlargement and Euro Adoption Strategies," European Economy - Economic Papers 2008 - 2015 304, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    8. Lackó, Mária, 2006. "Az adóráták és a korrupció hatásai a munkapiacra. Keresztmetszeti összehasonlító elemzés az OECD-országokon [The effects of tax rates and corruption on the labour market. A cross-sectional comparat," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 961-985.
    9. Rutkowski, Jan, 2006. "Labor market developments during economic transition," Policy Research Working Paper Series 3894, The World Bank.
    10. Mária Lackó, 2004. "Tax Rates and Corruption: Labour-market and Fiscal Effects. Empirical cross-country comparisons on OECD and transition countries," wiiw Research Reports 309, The Vienna Institute for International Economic Studies, wiiw.
    11. Brencic, Vera, 2009. "Employers' hiring practices, employment protection, and costly search: A vacancy-level analysis," Labour Economics, Elsevier, vol. 16(5), pages 461-479, October.
    12. Szapáry, György & Orbán, Gábor, 2004. "A stabilitási és növekedési paktum az új tagállamok szemszögéből [The Stabilization and Growth Pact in the light of the new EU member-states]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 810-831.
    13. Mitra, Pradeep & Stern, Nicholas, 2003. "Tax systems in transition," Policy Research Working Paper Series 2947, The World Bank.
    14. Bastien Alvarez & Gianluca Orefice & Farid Toubal, 2022. "Trade Liberalization, Collective Bargaining and Workers: Wages and Working Conditions," Working Papers 2022-02, CEPII research center.

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