Worker Displacement During The Transition: Experience From Slovenia

Peter Orazem, Milan Vodopivec and Ruth Wu

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: The transition to market in Slovenia created labor displacements that were on par or greater than that experienced in North America in the 1980s. A simple theoretical model suggests that factors which raise the probability of layoff should also increase the probability of a quit, predictions that are borne out in data. Probability of both layoffs and quits fell with worker tenure, firm profitability and expected severance costs. Individuals facing a higher probability of displacement accepted slower wage growth than otherwise comparable workers. The incentives to avoid displacement were strongï¾—workers that actually were displaced faced a slow process of transiting out of unemployment with only one-third finding reemployment. Correcting for selection, real wage losses for displaced workers are comparable to those reported for displaced workers in North America.

Date: 2004-08-30
New Economics Papers: this item is included in nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in Economics of Transition, April 2005, vol. 13, pp. 311-340

Downloads: (external link)
http://www2.econ.iastate.edu/papers/p5296-2004-08-30.pdf (application/pdf)

Related works:
Journal Article: Worker displacement during the transition: Experience from Slovenia (2005)
Working Paper: Worker Displacement during the Transition: Experience from Slovenia (2004)
Working Paper: Worker displacement during the transition: experience from Slovenia (1995)
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:isu:genres:12032

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().