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Labor Markets in CIS Countries

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  • Olga Pavlova
  • Oleksandr Rohozynsky

Abstract

This work is done as contribution to the Regional Human Development Report 2004 section 3.7 on “Labor Markets”. The paper focuses on discussing peculiarities of the labor market transition in CIS countries, features of unemployment, labor legislation, and role of the trade unions. The paper gathers information on the labor markets of CIS and Eastern European countries that was available by summer 2004, and draws policy recommendations based on comparison between these two groups of countries. The main conclusion is that the transformation of labor markets is not complete in any of the CIS countries; most of the problems that prevailed in the early 1990s remain. These include: centralized wage setting in five CIS countries – Belarus, Moldova, Tajikistan, Turkmenistan, and Uzbekistan; extensive unemployment and underemployment, much of which is hidden; ineffective systems of labor relations and social protection; large mismatches between the labor market skills supplied and the skills demanded by new market economies; inadequate official labor market data. Fortunately, the strong economic growth experienced by most CIS countries since 1999 has increased the demand for labor and is putting downward pressures on unemployment rates. This offers a window of opportunity for policy makers seeking to further transform labor markets, and to modernize labor relations and social protection systems. The above analysis suggests the policy recommendations to speed up further transformation.

Suggested Citation

  • Olga Pavlova & Oleksandr Rohozynsky, 2005. "Labor Markets in CIS Countries," CASE Network Studies and Analyses 0311, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0311
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    References listed on IDEAS

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    6. Avdagic, Sabina, 2003. "Accounting for Variations in Trade Union Effectiveness: State-Labor Relations in East Central Europe," MPIfG Discussion Paper 03/6, Max Planck Institute for the Study of Societies.
    7. Yemtsov, Ruslan, 2001. "Labor Markets, Inequality and Poverty in Georgia," IZA Discussion Papers 251, Institute of Labor Economics (IZA).
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    Cited by:

    1. Nurlan Nurseiit, 2017. "The Consequences of the Choice of an Economic Model for the Development of CIS Countries," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(2), pages 110-140.
    2. repec:wsr:wpaper:y:2012:i:081 is not listed on IDEAS
    3. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses 0464, CASE-Center for Social and Economic Research.
    4. Jovanovic, Branimir & Petreski, Marjan, 2014. "Monetary policy, exchange rates and labor unions in SEE and the CIS during the financial crisis," Economic Systems, Elsevier, vol. 38(3), pages 309-332.

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