Gradual restructuring and structural unemployment in Poland. A legacy of central planning

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Title: Gradual restructuring and structural unemployment in Poland. A legacy of central planning
Authors: Lehmann, Hartmut
Walsh, Patrick P.
Permanent link: http://hdl.handle.net/10197/974
Date: 1999
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.
Funding Details: Marie Curie Research Training Grant ERB4001GT965163; The Volkswagen Foundation
Type of material: Working Paper
Publisher: LICOS Centre for Transition Economics
Copyright (published version): 1999, LICOS Centre for Transition Economics
Keywords: Out-dated human capitalRestructuringUnemploymentPoland
Subject LCSH: Human capital--Poland
Unemployment--Poland
Labor supply--Poland
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Politics and International Relations Research Collection
Geary Institute Research Collection

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