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Labour Adjustment and Efficiency in Hungary

Author

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  • Gabor Korosi

    (Institute of Economics, Hungarian Academy of Sciences)

Abstract

Transition from socialist to market economy brought drastic changes to the Hungarian labour market. Employment fell by 1.6 million, i.e., by more than 25% during the early transition period, while unemployment jumped from practically nil to over 14% within four years. The rapid economic growth of the recent years could only create relatively few jobs, even though the unemployment rate continuously declined, and is less than 6% since 2001. This paper describes labour adjustment after the transitional recession, and its relationship to corporate efficiency during the recovery period, based on a panel of medium-sized and large Hungarian firms. Labour demand is also related to firm level productive efficiency.

Suggested Citation

  • Gabor Korosi, 2002. "Labour Adjustment and Efficiency in Hungary," Budapest Working Papers on the Labour Market 0204, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:0204
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    File URL: http://www.econ.core.hu/doc/bwp/bwp/bwp0204.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    labour demand; productive efficiency; firm in transition economy;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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