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Transition of the Hungarian Labour Market: Age, Skill and Regional Differences

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  • Fazekas, Károly

Abstract

The system change has been accompanied by large scale redundancies, massive and frequently long-term unemployment, a high level of inactivity and growing income and regional disparities in Hungary. Transition has its winners and losers both in terms of economic activity and wages. The paper describes the role of three factors: age, skill, and location shaping labour market differences during three phases of transition. In the first part of the paper, impact of transition on the Hungarian labour market has been discussed. In the second part we investigate the evolution of age and skill related differences on the labour market. In the third part regional differences will be discussed. Section four concludes and discusses policy options available to reduce labour market disparities in the following years.

Suggested Citation

  • Fazekas, Károly, 2005. "Transition of the Hungarian Labour Market: Age, Skill and Regional Differences," Discussion Paper 241, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:piedp1:241
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/14235/pie_dp241.pdf
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    References listed on IDEAS

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    1. Gabor Kertesi & Janos Kollo, 2002. "Labour Demand with Heterogeneous Labour Inputs after the Transition in Hungary, 1992-1999 - and the Potential Consequences of the Increase of Minimum Wage in 2001 and 2002," Budapest Working Papers on the Labour Market 0205, Institute of Economics, Centre for Economic and Regional Studies.
    2. Commander, Simon & Köllő, János, 2004. "The Changing Demand for Skills: Evidence from the Transition," IZA Discussion Papers 1073, Institute of Labor Economics (IZA).
    3. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter.
    4. Gabor Kertesi, 2004. "The Employment of the Roma - Evidence from Hungary," Budapest Working Papers on the Labour Market 0401, Institute of Economics, Centre for Economic and Regional Studies.
    5. Gabor Kezdi, 2002. "Two Phases of Labor Market Transition in Hungary: Inter-Sectoral Reallocation and Skill-Biased Technological Change," Budapest Working Papers on the Labour Market 0203, Institute of Economics, Centre for Economic and Regional Studies.
    6. Halpern,László & Wyplosz,Charles (ed.), 1998. "Hungary: Towards a Market Economy," Cambridge Books, Cambridge University Press, number 9780521630689, October.
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    Cited by:

    1. Michael Landesmann & Hermine Vidovic, 2006. "Employment Developments in Central and Eastern Europe," wiiw Research Reports 332, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Hungary; transition; labour market;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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