Effects of Labor Reallocation on Productivity and Inequality—insights From Studies on Transition

Tyrowicz, Joanna; Velde, Lucas van der; Švejnar, Jan

doi:10.1111/joes.12167

Cited by 9 publications

(11 citation statements)

References 86 publications

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“…Wage inequality was generally higher in CIS countries than in CEE and SEE countries. These increases in inequality have been attributed to a range of factors, such as globalisation, skilled-biased technological change, differential access to schooling, labour reallocation, high unemployment and institutional changes (Franco and Gerussi, 2010;Rose, 2014;Aristei and Perugini, 2014;Satti et al, 2015;Tyrowicz et al, 2017). Whilst the diversity of experience amongst ETEs has been attributed to differences in initial conditions, country specifics and policy choices (Mitra and Yemtsov, 2006).…”

Section: Introductionmentioning

confidence: 99%

Did FDI increase wage inequality in transition economies?

Alili

Adnett

2018

IJSE

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Purpose of this paper-The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in globalisation is one major factor explaining this increasing wage inequality. International trade and FDI have increased significantly since the beginning of transition and this paper focuses onexamines whether FDI plays an important role in explaining the pattern of wage inequality in selected transition countries. Design/methodology/approach-A crosscountry empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index. Several model specifications and estimation strategies have been employed to obtain consistent estimates and to check for the robustness of the results. Findings-The results indicate that a rising share of inward FDI in GDP increased wage inequality in transition economies, though its overall effect was relatively small. Considering the long run, there is no clear evidence of a concave relationship between FDI and wage inequality, which may be a consequence of the relatively low high levels of FDI in manyost transition countries. Practical implications-Inwards FDI has made a small contribution to increasing wage inequality in European transition economies. However, its overall beneficial effects on labour markets in these countries suggests that rather than restricting FDI governments should target increasing the supply of skilled labour. What is original/value of paper-This new empirical evidence supports the hypothesis that an increased inward FDI stock as a share of GDP increases wage inequality in transition economies, however this relationship ismay be a complex one. Differences in average wages, wage differentials, employment shares of skilled workers and relative size of the foreignowned sector are all likely to be important for the behaviour of wage inequality.

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Section: Introductionmentioning

confidence: 99%

Did FDI increase wage inequality in transition economies?

Alili

Adnett

2018

IJSE

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“…A The coverage of countries and years available in the literature Burke and Walsh (2012) Poland 1994-1997Jurajda and Terrell (2003 Czechia, Estonia 1989-1995Jurajda and Terrell (2008 Czechia, Estonia 1989-1995Faggio and Konings (2003 Bulgaria, Estonia, Slovenia, Poland 1994-1997 Hungary, Romania, Russia, Ukraine 1992 Note: this list follows a recent quantitative overview of the literature (see Tyrowicz et al 2017). …”

Section: Discussionmentioning

confidence: 99%

“…Instead, we construct measures of hirings and separations. Relying on a large collection of estimates from the literature provided by Tyrowicz et al (2017) we show that the correlation between measures derived from LiTS and from earlier literature is high and statistically signicant. Results are reported in Table B.3 in the Appendices.…”

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confidence: 81%

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Labor reallocation and demographics

Tyrowicz

Velde

2018

Journal of Comparative Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker ows between jobs in dierent industries are rare relative to the demographic ows of youth entry and elderly exit. The same applies to the ows between state-owned enterprises and private rms. In fact, evidence suggest that changes in the demand for labor were accommodated mostly through demographic ows, with a smaller role left for job transitions. We also show that the speed of changing the ownership structure in the economy has driven exits to retirement, in particular the early exits. Terms of use: Documents in EconStor mayJEL Codes: P2, P5, D2, J6

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“…However, when pulled together from all the available studies, estimates of the flows tell a different story. Utilizing empirical evidence from 18 different studies, Svejnar et al (2016) show that the average reported destruction rates in the SOEs are not statistically larger than in the emerging private sector.…”

Section: Literature Reviewmentioning

confidence: 92%

Cyclical Trend of Labor Reallocation in Poland: Transition and Structural Change

Cichocki

Tyrowicz

Velde

2017

Eastern European Economics

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A bstract Using data from the Polish Labor Force Survey for 1995-2015 we construct measures of worker flows and inquire their cyclical properties as a way to test the predictions of structural change/transition theories regarding the reallocation process that took place in Eas tern European and FSU countries. This process has two features: the decline in public sector employment combined with an increase in private sector employment and the reallocation of labor from manufacturing to service sector. We find that labor market adjustments tend to amplify in upturns of the business cycle, while worker flows contribute only a fraction to the changing structure of employment.

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Effects of Labor Reallocation on Productivity and Inequality—insights From Studies on Transition

Cited by 9 publications

References 86 publications

Did FDI increase wage inequality in transition economies?

Did FDI increase wage inequality in transition economies?

Labor reallocation and demographics

Cyclical Trend of Labor Reallocation in Poland: Transition and Structural Change

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