On the Speed of Transition in Central and Eastern Europe : Does On-the-Job Search Matter?

Author/Editor:

Zuzana Brixiova

Publication Date:

August 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines how the on-the-job search of workers in the state sector who are seeking jobs in the private sector affects private sector employment, the unemployment level, and the unemployment duration in the transition economies of Central and Eastern Europe. The main finding is that on-the-job searching can account for the coexistence of a quickly growing private sector and a high unemployment level of long duration. The paper also addresses the issue of the optimal (output maximizing) rate of state sector closure and finds that the rate is slower when workers are simultaneously job hunting than when they are not.

Series:

Working Paper No. 97/102

Subject:

English

Publication Date:

August 1, 1997

ISBN/ISSN:

9781451948417/1018-5941

Stock No:

WPIEA1021997

Format:

Paper

Pages:

22

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