Unemployment and Worker-Firm Matching : Theory and Evidence from East and West Europe

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dc.creatorMunich, Daniel
dc.creatorSvejnar, Jan
dc.date2012-03-19T19:08:12Z
dc.date2012-03-19T19:08:12Z
dc.date2009-01-01
dc.date.accessioned2026-07-01T01:17:59Z
dc.descriptionThe paper tests three hypotheses about the causes of unemployment in the Central-East European transition economies and in a benchmark market economy (Western part of Germany). The first hypothesis (H1) is that unemployment is caused by inefficient matching. Hypothesis 2 (H2) is that unemployment is caused by low demand. Hypothesis 3 (H3) is that restructuring is at work. Our estimates suggest that the west and east German parts of Germany, Czech Republic and Slovakia are consistent with H2 and H3. Hungary provides limited support to all three hypotheses. Poland is consistent with H1. The economies in question hence contain one broad group of countries and one or two special cases. The group comprises the Czech Republic, Hungary, Slovak Republic and (possibly) East Germany. These countries resemble West Germany in that they display increasing returns to scale in matching and unemployment appears to be driven by restructuring and low demand. The East German case is complex because of its major active labor market policies and a negative trend in efficiency in matching. In some sense, East Germany resembles more Poland, which in addition to restructuring and low demand for labor appears to suffer from a structural mismatch reflected in relatively low returns to scale in matching. Finally, our data provide evidence that goes counter to one of the main predictions of the theories of transition, namely that the turnover (inflow) rate in the transition countries would rise dramatically at the start of the transition, be temporarily very high and gradually decline and approach the level observed in otherwise similar market economies such as West Germany.
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dc.formattext/plain
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090107090518
dc.identifierhttps://hdl.handle.net/10986/4008
dc.identifierhttps://doi.org/10.1596/1813-9450-4810
dc.identifier.urihttp://hdl.handle.net/123456789/416842
dc.languageEnglish
dc.relationPolicy Research working paper ; no. WPS 4810
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectACCESS TO INFORMATION
dc.subjectACTIVE EMPLOYMENT
dc.subjectACTIVE EMPLOYMENT POLICY
dc.subjectACTIVE LABOR
dc.subjectACTIVE LABOR MARKET
dc.subjectACTIVE LABOR MARKET POLICIES
dc.subjectACTIVE LABOR MARKET PROGRAMS
dc.subjectACTIVE LABOUR
dc.subjectACTIVE LABOUR MARKET
dc.subjectACTIVE LABOUR MARKET POLICIES
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectBENCHMARK
dc.subjectBOND
dc.subjectBUSINESS CYCLES
dc.subjectCENTRAL BANK
dc.subjectCOMPLICATIONS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCROSS-SECTIONAL DATA
dc.subjectDEPRECIATION
dc.subjectDEPRECIATIONS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISEQUILIBRIUM
dc.subjectECONOMETRICS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC STRUCTURES
dc.subjectECONOMIC TRANSITION
dc.subjectELASTICITY
dc.subjectEQUILIBRIUM UNEMPLOYMENT
dc.subjectESTIMATED PARAMETERS
dc.subjectEXCHANGE RATE
dc.subjectEXTERNAL SHOCKS
dc.subjectEXTERNALITIES
dc.subjectFIRM LEVEL
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL SUBSIDIES
dc.subjectFUTURE RESEARCH
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectHIGH UNEMPLOYMENT
dc.subjectHIGH UNEMPLOYMENT RATE
dc.subjectHIGH UNEMPLOYMENT RATES
dc.subjectHIGH WAGE
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCREASING RETURNS
dc.subjectINCREASING RETURNS TO SCALE
dc.subjectINEFFICIENCY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectJOB CREATION
dc.subjectJOB DESTRUCTION
dc.subjectJOB SEARCH
dc.subjectJOB SHIFTS
dc.subjectJOB VACANCIES
dc.subjectJOBS
dc.subjectLABOR FORCE
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectLABOR MARKET CONDITIONS
dc.subjectLABOR MARKET INDICATORS
dc.subjectLABOR MARKET INSTITUTIONS
dc.subjectLABOR MARKET TURNOVER
dc.subjectLABOR MARKETS
dc.subjectLABOR MOBILITY
dc.subjectLABOR OFFICE
dc.subjectLABOR TURNOVER
dc.subjectLABOUR
dc.subjectLABOUR FORCE
dc.subjectLABOUR MARKET
dc.subjectLABOUR MARKETS
dc.subjectLABOUR OFFICE
dc.subjectLOW INTEREST RATES
dc.subjectLOW UNEMPLOYMENT
dc.subjectLOW UNEMPLOYMENT RATE
dc.subjectMACROECONOMIC POLICIES
dc.subjectMARKET ECONOMIES
dc.subjectMARKET ECONOMY
dc.subjectMULTIPLE EQUILIBRIA
dc.subjectNATIONAL COUNCIL
dc.subjectNATURAL GAS
dc.subjectNEW JOBS
dc.subjectOPEN UNEMPLOYMENT
dc.subjectOPTIMIZATION
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOLITICAL ECONOMY
dc.subjectPOPULATION SETTLEMENTS
dc.subjectPOSITIVE EXTERNALITY
dc.subjectPRIVATE SECTOR
dc.subjectPROBABILITIES
dc.subjectPROBABILITY
dc.subjectPROGRESS
dc.subjectPUBLIC SECTOR EMPLOYMENT
dc.subjectRECESSION
dc.subjectREGIONAL UNEMPLOYMENT
dc.subjectRESPECT
dc.subjectRISING UNEMPLOYMENT
dc.subjectSAFETY
dc.subjectSAFETY NET
dc.subjectSCALE EFFECT
dc.subjectSCALE EFFECTS
dc.subjectSERVICE SECTOR
dc.subjectSKILL GROUPS
dc.subjectSOCIAL POLICIES
dc.subjectSTOCKS
dc.subjectSTRUCTURAL CHANGE
dc.subjectTRAINING PROGRAMS
dc.subjectTRANSITION ECONOMIES
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT DURATION
dc.subjectUNEMPLOYMENT EQUILIBRIUM
dc.subjectUNEMPLOYMENT OUTCOME
dc.subjectUNEMPLOYMENT OUTCOMES
dc.subjectUNEMPLOYMENT PROBLEM
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNEMPLOYMENT RATES
dc.subjectVALUABLE
dc.subjectWAGE LEVEL
dc.subjectWORKER
dc.subjectWORKERS
dc.titleUnemployment and Worker-Firm Matching : Theory and Evidence from East and West Europe

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