Worker displacement during the transition
Subtitle: experience from Slovenia
By: by Peter F. Orazem, Milan Vodopivec, Ruth Wu.
Contributors: Vodopivec, Milan.; Wu, Ruth.
Series: Discussion paper ;; no. 1297; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1297
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Labor market -- Slovenia.; Employees -- Dismissal of -- Slovenia.
Description: "The transition to market in Slovenia created labor displacements that were on par or greater than that experienced in North America in the 1980s. A simple theoretical model suggests that factors which raise the probability of layoff should also increase the probability of a quit, predictions that are borne out in data. Probability of both layoffs and quits fell with worker tenure, firm profitability and expected severance costs. Individuals facing a higher probability of displacement accepted slower wage growth than otherwise comparable workers. The incentives to avoid displacement were strong -- workers that actually were displaced faced a slow process of transiting out of unemployment with only one-third finding reemployment. Correcting for selection, real wage losses for displaced workers are comparable to those reported for displaced workers in North America"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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