Labor Reallocation in Transitional Economies--Twenty Years Later
The paper investigates labor reallocation across main economic sectors between 1989 and 2007 in the CEE2 countries, now all members of the EU, using a methodology presented in Jackman and Pauna (1997). Defining a series of indices aimed at capturing the speed, magnitude and efficiency of employment...
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/4836 |
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okr-10986-48362021-04-23T14:02:19Z Labor Reallocation in Transitional Economies--Twenty Years Later Pauna, Catalin Macroeconomics: Production E230 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 The paper investigates labor reallocation across main economic sectors between 1989 and 2007 in the CEE2 countries, now all members of the EU, using a methodology presented in Jackman and Pauna (1997). Defining a series of indices aimed at capturing the speed, magnitude and efficiency of employment reallocation, the work assesses the extent to which these countries have succeeded in converging towards distributions of sectoral employment similar to those in the old EU members. The work shows that, overall, the CEE countries have made progress towards reallocating jobs from the oversized labor intensive sectors, characteristic of the early years of transition, such as agriculture and heavy industries, towards the services sector. However, convergence has been relatively slow and its pace has been different from country to country. Bulgaria emerges as the country where the fastest restructuring has taken place, and in the right direction. Romania, in particular, appears to have made least progress, although it is also moving in the right direction. The still large agricultural sector, which continued to hire around 30% of the occupied population in 2007, remains an area which will require further and massive restructuring. As of 2007, in the case of Romania, around 40% of the jobs expected to be created in the growing sectors, computed by benchmarking actual job destruction and job creation against the comparator economy, have occurred. The figure increases to over 50%, when the distortive effect of agriculture is removed. At the same time, over 90% of the job destruction and creation took place in the appropriate direction, towards the comparator EU employment distribution. 2012-03-30T07:29:59Z 2012-03-30T07:29:59Z 2009 Journal Article Romanian Journal of Economic Forecasting 15826163 http://hdl.handle.net/10986/4836 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Romania Bulgaria |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Macroeconomics: Production E230 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 |
| spellingShingle |
Macroeconomics: Production E230 Employment Unemployment Wages Intergenerational Income Distribution Aggregate Human Capital E240 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Pauna, Catalin Labor Reallocation in Transitional Economies--Twenty Years Later |
| geographic_facet |
Romania Bulgaria |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
The paper investigates labor reallocation across main economic sectors between 1989 and 2007 in the CEE2 countries, now all members of the EU, using a methodology presented in Jackman and Pauna (1997). Defining a series of indices aimed at capturing the speed, magnitude and efficiency of employment reallocation, the work assesses the extent to which these countries have succeeded in converging towards distributions of sectoral employment similar to those in the old EU members. The work shows that, overall, the CEE countries have made progress towards reallocating jobs from the oversized labor intensive sectors, characteristic of the early years of transition, such as agriculture and heavy industries, towards the services sector. However, convergence has been relatively slow and its pace has been different from country to country. Bulgaria emerges as the country where the fastest restructuring has taken place, and in the right direction. Romania, in particular, appears to have made least progress, although it is also moving in the right direction. The still large agricultural sector, which continued to hire around 30% of the occupied population in 2007, remains an area which will require further and massive restructuring. As of 2007, in the case of Romania, around 40% of the jobs expected to be created in the growing sectors, computed by benchmarking actual job destruction and job creation against the comparator economy, have occurred. The figure increases to over 50%, when the distortive effect of agriculture is removed. At the same time, over 90% of the job destruction and creation took place in the appropriate direction, towards the comparator EU employment distribution. |
| format |
Journal Article |
| author |
Pauna, Catalin |
| author_facet |
Pauna, Catalin |
| author_sort |
Pauna, Catalin |
| title |
Labor Reallocation in Transitional Economies--Twenty Years Later |
| title_short |
Labor Reallocation in Transitional Economies--Twenty Years Later |
| title_full |
Labor Reallocation in Transitional Economies--Twenty Years Later |
| title_fullStr |
Labor Reallocation in Transitional Economies--Twenty Years Later |
| title_full_unstemmed |
Labor Reallocation in Transitional Economies--Twenty Years Later |
| title_sort |
labor reallocation in transitional economies--twenty years later |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4836 |
| _version_ |
1764392945986830336 |