On the Speed of Transition in Central and Eastern Europe: Does On-the-Job Search Matter?
August 1, 1997
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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.
Subject: Economic sectors, Employment, Labor, Public sector, Unemployment, Unemployment rate
Keywords: Central and Eastern Europe, Employment, on-the-job search, private sector employment, private sector vacancy, private sector wage, Public sector, State sector employment, state sector worker, unemployment, Unemployment rate, WP
Pages:
22
Volume:
1997
DOI:
Issue:
102
Series:
Working Paper No. 1997/102
Stock No:
WPIEA1021997
ISBN:
9781451948417
ISSN:
1018-5941
