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Transition with Labor Supply

In: The Economics of Transition

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  • Tito Boeri

Abstract

Ten years after the start of transition, there are many puzzles we still have to live with. Why did all countries experience strong declines in output at the outset of economic transformations, and most of them are slowly, if at all, recovering from this ‘transitional recession’? How can these L-shaped patterns of GDP be reconciled with a shift from a less efficient to a more efficient economic system? Why were (and still are) unemployment pools in these countries so desperately stagnant in spite of the radical transformations going on? Why was unemployment dynamics so different between, on the one hand, the Czech Republic and, on the other hand, the other members of the Visegrad group? Why were employment-to-output elasticities negligible in Russia compared not only with Western countries, but also with the countries now knocking at the door of the European Union (EU)?

Suggested Citation

  • Tito Boeri, 2007. "Transition with Labor Supply," Palgrave Macmillan Books, in: Erik Berglöf & Gérard Roland (ed.), The Economics of Transition, chapter 5, pages 94-143, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-74092-5_5
    DOI: 10.1057/978-1-349-74092-5_5
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