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Gradual restructuring and structural unemployment in Poland. A legacy of central planning
Author(s)
Date Issued
1999
Date Available
2009-03-31T13:53:00Z
Abstract
In the transition to a market economy we examine the relationship between inherited human capital structures and the evolution of unemployment within a two-sector model of endogenous restructuring. We find evidence across Polish regions for the predictions of our theory. The inherited
dominance of ineffective human capital in eastern regions of Poland has delayed restructuring, reduced unemployment turnover and lowered the number of workers with out-dated human capital in the
unemployment stock. On the other hand, the dominance of effective human capital in western regions has induced restructuring, boosted unemployment turnover and increased the number of workers with out-dated human capital among the unemployed. We argue that the role of government to prevent such outcomes is limited. Yet, intervention conceived as social rather than economic policies can lessen the social cost created from the inheritance of out-dated human capital, which is a legacy of central
planning.
Sponsorship
Marie Curie Research Training Grant ERB4001GT965163; The Volkswagen Foundation
Type of Material
Working Paper
Publisher
LICOS Centre for Transition Economics
Series
LICOS Discussion Paper
78/1999
Copyright (Published Version)
1999, LICOS Centre for Transition Economics
Classification
J6
L0
O5
Subject – LCSH
Human capital--Poland
Unemployment--Poland
Labor supply--Poland
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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