Structural Change, Welfare Systems, and Labour Reallocation Lessons from the Transition of Formerly Planned Economies

by Boeri, Tito

• ISBN13: 9780198293651
• ISBN10: 0198293658
• Format: Hardcover
• Copyright: 2000-12-28
• Publisher: Oxford University Press

Summary

This books deals with labour reallocation in the midst of structural change, drawing on the experience of economic transition in formerly planned economies. It details those features of social welfare systems best suited to fostering structural change while at the same time reducing socialcosts. The interaction between labour and social policies is studies, showing the crucial role that non-employment benefits play in both the scope and the speed of transition. By including the influence of education systems, institution-building, and policy-enforcement mechanisms, this book goes beyondprevious studies to provide a detailed analysis of the many contributing factors to the success or failure of the transition process.

Author Biography

Tito Boeri is Professor of Economics at Bocconi University, Milan. Formerly Senior Economist at the Organisation for Economic Co-operation and Development (OECD), he is Director of the Fondazione Rodolfo Debenedetti, and a member of the editorial board of the Journal of Comparative Economics.

Table of Contents

Acknowledgements	vii
List of Abbreviations	ix
Introduction	1	(16)
The Puzzles of Transition	17	(37)
Introduction	17	(2)
What Did We Expect to Occur?	19	(10)
What Happened?	29	(14)
Identifying the Actual Policy Instruments	43	(11)
Building Blocks of the OST Models	46	(1)
Building Blocks of the OST Models	46	(8)
The Timing of Reforms	54	(51)
Introduction	54	(2)
The True and False Legacies of Central Planning	56	(14)
Putting the Legacies of Central Planning into a Framework	70	(13)
Unemployment Persistence and the Policy Experiments	83	(9)
Final Remarks on Timing	92	(13)
A Simple Model of Transition	94	(1)
Building Blocks	94	(1)
Values	95	(2)
Matching Technologies	97	(2)
Wage Determination and Job Creation	99	(1)
Market Tightness	99	(3)
Steady-State Equilibrium	102	(1)
Transition Paths	103	(1)
Fiscal Externality	104	(1)
Safety Nets, Earnings Inequalities and Reallocation	105	(56)
Introduction	105	(4)
Wage Setting in the Midst of Transition	109	(9)
Wage Dispersion, Unemployment and Non-Employment Benefits	118	(13)
The Large-Scale Unemployment Differentials	131	(20)
Final Remarks on Earnings Distribution	151	(10)
The Structure of Benefits and Reallocation	154	(1)
Endogenizing Workers' Heterogeneity	154	(3)
Main Results	157	(4)
Returning to Europe	161	(59)
Introduction	161	(4)
International Differences in Social-Policy Models	165	(9)
The Reasons for Bad Policies	174	(14)
EU Conditionality and the Informal Sector	188	(11)
Still Time to Change	199	(16)
Final Remarks	215	(5)
Unemployment Benefits and the Informal Sector	217	(3)
References	220	(15)
Index	235