Labor Market Institutions and Unemployment Dynamics in Transition Economies

Pietro Garibaldi and Zuzana Brixiová Schwidrowski

IMF Staff Papers, 1998, vol. 45, issue 2, 269-308

Abstract: The paper proposes and solves a matching model of job reallocation between the public and the private sector, and it shows that cross-country differences in labor market institutions are broadly consistent with the dynamics of unemployment and real wages in transition economies. Two main results arise from the analysis. First, higher unemployment benefits speed up job destruction in the state sector and private job creation at the early stages of the transition, but they increase unemployment in the long run. Second, higher minimum wages can theoretically speed up the reallocation process without affecting the long run equilibrium.

JEL-codes: E24 J63 (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.jstor.org/stable/3867391?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Labor Market Institutions and Unemployment Dynamics in Transition Economies (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:45:y:1998:i:2:p:269-308

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().