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Labour Market Policy and the Reallocation of Labour Across Sectors

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  • Richard Jackman
  • C Pauna

Abstract

This paper investigates the extent of labour market allocation across broad industrial sectors in the transition of economies of Eastern Europe since 1989. It offers various measures of the magnitude of labour misallocation and of the speed and efficiency of reallocation during the first half of the 1980s. It compares the performance of the economies of Eastern Europe with one another and with two Southern European economies, Greece and Portugal, which have also been experiencing substantial economic change. Contrary to much a pirori theorising, the paper finds no correlation between unemployment and the speed or effectiveness of labour market reallocation. The authors argue that the analysis in the paper strengthens the case for an active as against a passive approach to labour market policy.

Suggested Citation

  • Richard Jackman & C Pauna, 1997. "Labour Market Policy and the Reallocation of Labour Across Sectors," CEP Discussion Papers dp0338, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0338
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    References listed on IDEAS

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    1. Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition in Central Europe," NBER Chapters, in: NBER Macroeconomics Annual 1994, Volume 9, pages 283-330, National Bureau of Economic Research, Inc.
    2. McAuley, Alastair, 1991. "The Economic Transition in Eastern Europe: Employment, Income Distribution, and the Social Security Net," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 7(4), pages 93-105, Winter.
    3. Hughes, Gordon & Hare, Paul G, 1992. "Industrial Policy and Restructuring in Eastern Europe," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 8(1), pages 82-104, Spring.
    4. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Leibniz Centre for European Economic Research.
    5. Tito Boeri & Michael Burda, 1997. "Aktivní politika na trhu práce, sladění nabídky s poptávkou a tzv. český zázrak [Active Labour Market Policies, Job Matching and the Czech Miracle]," Politická ekonomie, Prague University of Economics and Business, vol. 1997(2), pages 183-192.
    6. I Beleva & Richard Jackman & M Nenova-Amar, 1995. "The Labour Market in Bulgaria," CEP Discussion Papers dp0268, Centre for Economic Performance, LSE.
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    Citations

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    Cited by:

    1. Raiser, Martin & Schaffer, Mark & Schuchhardt, Johannes, 2004. "Benchmarking structural change in transition," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 47-81, March.
    2. repec:lan:wpaper:4753 is not listed on IDEAS
    3. Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan.
    4. repec:lan:wpaper:4325 is not listed on IDEAS
    5. Jacqueline Mazza, 2000. "Unemployment Insurance: Case Studies and Lessons for Latin America and the Caribbean," Research Department Publications 4192, Inter-American Development Bank, Research Department.
    6. Palan, Nicole & Schmiedeberg, Claudia, 2010. "Structural convergence of European countries," Structural Change and Economic Dynamics, Elsevier, vol. 21(2), pages 85-100, May.
    7. repec:lan:wpaper:4452 is not listed on IDEAS
    8. H Ingham & M Ingham, 2003. "State transitions in Polish agriculture," Working Papers 541970, Lancaster University Management School, Economics Department.
    9. John Earle, 2012. "Industrial decline and labor reallocation in a transforming economy: Romania in early transition," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-18, December.
    10. Tomasz Mickiewicz & Anna Zalewska, 2002. "Deindustrialisation. Lessons from the StructuralOutcomes of Post-Communist Transition," William Davidson Institute Working Papers Series 463, William Davidson Institute at the University of Michigan.
    11. repec:got:cegedp:75 is not listed on IDEAS
    12. Boris Vujčić, 1998. "Structural Changes in Employment: Where We Are, How We got There and Where Are We Going To?," Working Papers 9992, The Croatian National Bank, Croatia.
    13. Jacqueline Mazza, 2000. "Seguro de desempleo: estudios de casos individuales y enseñanzas para América Latina y el Caribe," Research Department Publications 4193, Inter-American Development Bank, Research Department.

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