Economic Restructuring, Unemployment, and Growth in a Transition Economy

This paper develops a model of the process of reallocation of labor from the state sector to the private sector. When growth is exogenously determined, we show that in the initial stages of transition unemployment will rise over time. After a critical stage in the transition process, restructuring i...

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Bibliographic Details
Main Author: Krajnyak, Kornelia
Other Authors: Chadha, Bankim, Coricelli, Fabrizio
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1993
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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100 1 |a Krajnyak, Kornelia 
245 0 0 |a Economic Restructuring, Unemployment, and Growth in a Transition Economy  |c Kornelia Krajnyak, Bankim Chadha, Fabrizio Coricelli 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1993 
300 |a 49 pages 
651 4 |a Slovak Republic 
653 |a Employment 
653 |a Macroeconomics 
653 |a Aggregate Labor Productivity 
653 |a Civil service & public sector 
653 |a Economic theory 
653 |a Public sector 
653 |a Human capital 
653 |a Skills 
653 |a Economic sectors 
653 |a Finance, Public 
653 |a Wages 
653 |a Labour 
653 |a Labor Productivity 
653 |a Occupational Choice 
653 |a Intergenerational Income Distribution 
653 |a Labor 
653 |a Unemployment 
653 |a Socialist Systems and Transitional Economies: General 
653 |a Public-Private Enterprises 
653 |a Aggregate Human Capital 
653 |a Human Capital 
653 |a Public Enterprises 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Unemployment rate 
653 |a Income economics 
700 1 |a Chadha, Bankim 
700 1 |a Coricelli, Fabrizio 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
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082 0 |a 330 
520 |a This paper develops a model of the process of reallocation of labor from the state sector to the private sector. When growth is exogenously determined, we show that in the initial stages of transition unemployment will rise over time. After a critical stage in the transition process, restructuring is accompanied by a decline in unemployment. When growth is endogenously determined, and human capital is acquired by learning-by-doing, we show that whether restructuring eventually occurs is determined by the level of human capital in the private sector and the rate of unemployment. The effects of various shocks and government policies in affecting the costs, speed, and eventual outcome of restructuring are analyzed