 The persistence of job security in reforming socialist economiesNo 560, Policy Research Working Paper Series from The World Bank Abstract: The quest for efficiency underlies the reform efforts of the socialist economies, but job security and overemployment (redundant jobs) still characterize these economies. The author argues that reforming socialist economies have maintained job security not through planning but mainly through a complicated bargaining among coalitions that results in a massive redistribution. This redistribution amounts to a bailing out of the ailing or less productive firms and workers at the expense of the more productive firms and workers and of the household sector as a whole. The author substantiates his argument with an empirical analysis of the redistribution associated with the soft budget constraint in Yugoslavia in the 1970s and 1980s. He shows that redistribution is the outcome of a confrontation among coalitions and explains its compensatory nature. Keywords: Environmental Economics&Policies; Economic Theory&Research; Banks&Banking Reform; Municipal Financial Management; International Terrorism&Counterterrorism (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:560 Access Statistics for this paper More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC. |
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