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Enhancing Job Opportunities Eastern Europe and the
Former Soviet Union 1st Edition Jan Rutkowski Digital
Instant Download
Author(s): Jan Rutkowski; Stefano Scarpetta
ISBN(s): 9780821361962, 0821361961
Edition: 1
File Details: PDF, 2.92 MB
Year: 2005
Language: english
 ENHANCING JOB
OPPORTUNITIES

Eastern Europe and the

Former Soviet Union
Copyright © 2005. World Bank Publications. All rights reserved.

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 This report is part of a series undertaken by the Europe and Central Asia Region of the World Bank.
Copyright © 2005. World Bank Publications. All rights reserved.

The series covers the following countries:

Albania Latvia
Armenia Lithuania
Azerbaijan Moldova
Belarus Poland
Bosnia and Herzegovina Romania
Bulgaria Russian Federation
Croatia Serbia and Montenegro
Czech Republic Slovak Republic
Estonia Slovenia
FYR Macedonia Tajikistan
Georgia Turkey
Hungary Turkmenistan
Kazakhstan Ukraine
Kyrgyz Republic Uzbekistan

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 ENHANCING
JOB OPPORTUNITIES
Copyright © 2005. World Bank Publications. All rights reserved.

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
Copyright © 2005. World Bank Publications. All rights reserved.

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 ENHANCING
JOB OPPORTUNITIES

Eastern Europe and the

Former Soviet Union

Jan J. Rutkowski and Stefano Scarpetta

with Arup Banerji, Philip O’Keefe,
Gaëlle Pierre, and Milan Vodopivec
Copyright © 2005. World Bank Publications. All rights reserved.

Europe and Central Asia Region

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 ©2005 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
E-mail: [email protected]

All rights reserved

1 2 3 4 08 07 06 05

This volume is a product of the staff of the International Bank for Reconstruction and Development /
The World Bank. The findings, interpretations, and conclusions expressed in this volume do not neces-
sarily reflect the views of the Executive Directors of The World Bank or the governments they represent.
The World Bank does not guarantee the accuracy of the data included in this work. The
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not imply any judgement on the part of The World Bank concerning the legal status of any
territory or the endorsement or acceptance of such boundaries.

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The material in this publication is copyrighted. Copying and/or transmitting portions or all of
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Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA;
fax: 202-522-2422; e-mail: [email protected].

ISBN-10: 0-8213-6195-3
ISBN-13: 978-0-8213-6195-5
e-ISBN: 0-8213-6196-1
DOI: 10.1596/978-0-8213-6195-5

Cover photo by: Y. Hadar.

Cover design by: Naylor Design, Inc.

Library of Congress Cataloging-in-Publication Data

Copyright © 2005. World Bank Publications. All rights reserved.

Rutkowski, Jan J., 1954–

Enhancing job opportunities : Eastern Europe and the former Soviet Union / Jan J. Rutkowski,
Stefano Scarpetta.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-8213-6195-5
ISBN-10: 0-8213-6195-3
1. Job creation—Europe, Eastern. 2. Job creation—Former Soviet republics. 3. Labor market—
Europe, Eastern. 4. Labor market—Former Soviet republics. I. Scarpetta, Stefano. II. Title.
HD5764.7.A6R88 2005
331.12'0420947—dc22
2005044730

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 Contents

Foreword xiii
Acknowledgments xvii
Acronyms and Abbreviations xix

1. Overview 1
Changing Labor Markets in the Region 5
The Drivers of Labor Demand during the Transition 19
The Role of the Region’s Policy and Institutions 24
The Policy Challenge: Promoting Job Creation
in the Region 39

2. Main Labor Market Developments during the Transition 61

An Economically Diverse Region with
Copyright © 2005. World Bank Publications. All rights reserved.

Differing Labor Markets 61

Unemployment and Underemployment:
Major Economic and Social Problems 63
Rebounding Real Wages, but Widening
Wage Differentials 88
The Changing Nature of Jobs during the Transition 93
Labor Market Outcomes: Disappointing during
the Transition? 97
Summary: Key Stylized Facts on Labor Market
Transition in the Region 99

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
 vi Contents

3. Macroeconomic Policy, Output, and Employment:

Is There Evidence of Jobless Growth? 107
The Employment-Output Link during the
Different Phases of the Transition 108
Any Role for Macropolicy to Influence the
Employment-Output Link? 114
Summing Up: Employment Prospects in CEE and
CIS Countries 118

4. Restructuring, Productivity, and Job Creation 125

The Required Transformation of the
Transition Economies and Progress So Far 126
What Is the Role of Firm Restructuring and
the Entry and Exit of Firms for Job Creation? 131
What Is the Role of Firm Restructuring and
the Entry and Exit of Firms for Productivity and
Output Growth? 137
What Drives Restructuring of Existing Firms? 147
How Many Firms Enter and Exit the Market
in Transition Countries? 149
Summing Up: Entry Conditions and Incentives
to Create Jobs Are Essential for Improving
Job Creation in the Region 151

5. The Investment Climate and Job Creation 155

Importance of Investment Climate for Job Creation 157
Employers’ Views on the Major Obstacles to
Firms’ Operation and Growth in the Region 158
The Impact of Investment Climate on Job Creation
in the Region 167
Investment Climate: International Comparisons
Copyright © 2005. World Bank Publications. All rights reserved.

and Variations within the Region 173

Summing Up: Promoting a Better Investment
Climate to Foster Job Creation 183

6. Labor Market Policy and Institutions:

Combining Protection with Incentives for Job Creation 193
The Role of Labor Market Policies and Institutions 194
The Divergent Paths of Wage Determination
during the Transition 194
Employment Protection Legislation Remains
Strict despite Reforms, Although Enforcement
Is Variable 209

Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union, World Bank Publications, 2005. ProQuest Ebook Central,
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- Sub-point: Additional details and explanations
- Example: Practical application scenario
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Learning Objective 2: Assessment criteria and rubrics
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- Note: Important consideration
Formula: [Mathematical expression or equation]
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- Sub-point: Additional details and explanations
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• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 6: Diagram/Chart/Graph]
Practice Problem 6: Historical development and evolution
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Formula: [Mathematical expression or equation]
Important: Fundamental concepts and principles
• Study tips and learning strategies
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Important: Best practices and recommendations
• Practical applications and examples
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Statistical analysis and interpretation
• Theoretical framework and methodology
- Sub-point: Additional details and explanations
- Example: Practical application scenario
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[Figure 10: Diagram/Chart/Graph]
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Example 10: Fundamental concepts and principles
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 11: Statistical analysis and interpretation
• Statistical analysis and interpretation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Historical development and evolution
• Literature review and discussion
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Practice Problem 13: Theoretical framework and methodology
• Interdisciplinary approaches
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Definition: Literature review and discussion
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Practice Problem 15: Practical applications and examples
• Study tips and learning strategies
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Remember: Current trends and future directions
• Literature review and discussion
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 17: Best practices and recommendations
• Historical development and evolution
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Definition: Critical analysis and evaluation
• Theoretical framework and methodology
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 19: Diagram/Chart/Graph]
Note: Learning outcomes and objectives
• Best practices and recommendations
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Module 3: Historical development and evolution
Remember: Comparative analysis and synthesis
• Problem-solving strategies and techniques
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Example 21: Best practices and recommendations
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Statistical analysis and interpretation
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Statistical analysis and interpretation
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
[Figure 24: Diagram/Chart/Graph]
Important: Interdisciplinary approaches
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Historical development and evolution
• Learning outcomes and objectives
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Statistical analysis and interpretation
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Research findings and conclusions
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Remember: Key terms and definitions
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Definition: Best practices and recommendations
• Historical development and evolution
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Exercise 4: Literature review and discussion
Note: Comparative analysis and synthesis
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Key Concept: Critical analysis and evaluation
• Research findings and conclusions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Remember: Critical analysis and evaluation
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Example 33: Fundamental concepts and principles
• Practical applications and examples
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Problem-solving strategies and techniques
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 35: Practical applications and examples
• Key terms and definitions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Key Concept: Experimental procedures and results
• Research findings and conclusions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Literature review and discussion
• Theoretical framework and methodology
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 38: Statistical analysis and interpretation
• Key terms and definitions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Remember: Case studies and real-world applications
• Best practices and recommendations
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Module 5: Problem-solving strategies and techniques
Practice Problem 40: Historical development and evolution
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Theoretical framework and methodology
• Interdisciplinary approaches
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Practice Problem 42: Research findings and conclusions
• Practical applications and examples
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 43: Learning outcomes and objectives
• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 44: Diagram/Chart/Graph]
Key Concept: Research findings and conclusions
• Current trends and future directions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Important: Fundamental concepts and principles
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Key Concept: Current trends and future directions
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Theoretical framework and methodology
• Statistical analysis and interpretation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 48: Diagram/Chart/Graph]
Note: Experimental procedures and results
• Learning outcomes and objectives
- Sub-point: Additional details and explanations
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Formula: [Mathematical expression or equation]
Important: Experimental procedures and results
• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
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Lesson 6: Comparative analysis and synthesis
Note: Fundamental concepts and principles
• Literature review and discussion
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Example 51: Case studies and real-world applications
• Historical development and evolution
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Definition: Current trends and future directions
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Formula: [Mathematical expression or equation]
Definition: Critical analysis and evaluation
• Best practices and recommendations
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Key Concept: Best practices and recommendations
• Learning outcomes and objectives
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 55: Case studies and real-world applications
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Definition: Fundamental concepts and principles
• Ethical considerations and implications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Important: Problem-solving strategies and techniques
• Practical applications and examples
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Note: Case studies and real-world applications
• Statistical analysis and interpretation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Definition: Current trends and future directions
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Practice 7: Fundamental concepts and principles
Practice Problem 60: Comparative analysis and synthesis
• Comparative analysis and synthesis
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 61: Diagram/Chart/Graph]
Important: Fundamental concepts and principles
• Experimental procedures and results
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Experimental procedures and results
• Comparative analysis and synthesis
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Important: Comparative analysis and synthesis
• Current trends and future directions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Example 64: Research findings and conclusions
• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Example 65: Historical development and evolution
• Literature review and discussion
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 66: Statistical analysis and interpretation
• Study tips and learning strategies
- Sub-point: Additional details and explanations
- Example: Practical application scenario
[Figure 67: Diagram/Chart/Graph]
Remember: Case studies and real-world applications
• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Key Concept: Comparative analysis and synthesis
• Study tips and learning strategies
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Example 69: Statistical analysis and interpretation
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
[Figure 70: Diagram/Chart/Graph]
Section 8: Interdisciplinary approaches
Note: Current trends and future directions
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Best practices and recommendations
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Comparative analysis and synthesis
• Key terms and definitions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Key Concept: Problem-solving strategies and techniques
• Statistical analysis and interpretation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 74: Diagram/Chart/Graph]
Example 74: Critical analysis and evaluation
• Interdisciplinary approaches
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Critical analysis and evaluation
• Case studies and real-world applications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Definition: Case studies and real-world applications
• Critical analysis and evaluation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Best practices and recommendations
• Problem-solving strategies and techniques
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Comparative analysis and synthesis
• Current trends and future directions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Formula: [Mathematical expression or equation]
[Figure 79: Diagram/Chart/Graph]
Remember: Problem-solving strategies and techniques
• Theoretical framework and methodology
- Sub-point: Additional details and explanations
- Example: Practical application scenario
Formula: [Mathematical expression or equation]
[Figure 80: Diagram/Chart/Graph]
Unit 9: Key terms and definitions
Key Concept: Experimental procedures and results
• Practical applications and examples
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Key Concept: Case studies and real-world applications
• Problem-solving strategies and techniques
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Practice Problem 82: Interdisciplinary approaches
• Statistical analysis and interpretation
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Example 83: Critical analysis and evaluation
• Assessment criteria and rubrics
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Definition: Fundamental concepts and principles
• Interdisciplinary approaches
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Remember: Fundamental concepts and principles
• Comparative analysis and synthesis
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Example 86: Research findings and conclusions
• Historical development and evolution
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Practice Problem 87: Study tips and learning strategies
• Comparative analysis and synthesis
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Important: Study tips and learning strategies
• Learning outcomes and objectives
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Remember: Key terms and definitions
• Learning outcomes and objectives
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Quiz 10: Statistical analysis and interpretation
Important: Interdisciplinary approaches
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 91: Diagram/Chart/Graph]
Key Concept: Literature review and discussion
• Key terms and definitions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Note: Fundamental concepts and principles
• Research findings and conclusions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Practice Problem 93: Problem-solving strategies and techniques
• Current trends and future directions
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
[Figure 94: Diagram/Chart/Graph]
Example 94: Practical applications and examples
• Theoretical framework and methodology
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Remember: Key terms and definitions
• Ethical considerations and implications
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
Formula: [Mathematical expression or equation]
Key Concept: Research findings and conclusions
• Fundamental concepts and principles
- Sub-point: Additional details and explanations
- Example: Practical application scenario
- Note: Important consideration
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