Labor Market in Postwar Bosnia and Herzegovina : How to Encourage Businesses to Create Jobs and Increase Worker Mobility
Based on extensive institutional, and empirical analysis, the report describes a static labor market in Bosnia, unable to accommodate the economic imbalances resulting from the war, and from the legacy of the socialist era. Worker, and job flows ha...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/11/2061523/bosnia-herzegovina-labor-market-postwar-bosnia-herzegovina-encourage-businesses-create-jobs-increase-worker-mobility http://hdl.handle.net/10986/15333 |
| Summary: | Based on extensive institutional, and
empirical analysis, the report describes a static labor
market in Bosnia, unable to accommodate the economic
imbalances resulting from the war, and from the legacy of
the socialist era. Worker, and job flows have been rather
low, lagging behind when compared with those in other
transition economies. While the restrictive employment
protection legislation - a strong barrier to labor mobility
and job creation - was removed in the year 2000, replaced by
a legislation attuned to the economy's needs, the
highly structured wage system however, is still in place,
precluding mobility, and job creation in the formal sector.
The report identifies several findings, indicating the
formal sector workforce practically denies access to young
workers, reflecting a low labor force participation - where
female labor force participation is among the lowest in the
region - with large unemployment levels. Data emphasizes
this point, showing a large informal sector, representing
thirty six percent of total employment, and, the study
presents evidence of under-reported wages to avoid, or
minimize social security contributions. But despite the
overall context of stagnant labor market, private firms have
been much more dynamic in all aspects of job flows,
including net employment growth. Newly privatized firms
reduced their workforces, though not dramatically, which
suggests no negative social impact of privatization have
occurred to date. Recommendations include a strengthened
business environment, within a comprehensive approach to
social policy, reorienting active labor programs while
continuing basic unemployment insurance. |
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