Namazie, Ceema Zahra (2003) Why labour hoarding may be rational: a model of firm behaviour during transition. CASEpaper, 69. Centre for Analysis of Social Exclusion, London School of Economics and Political Science, London, UK.
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In the Former Soviet Union, the early 1990s were characterized by large falls in GDP and small changes to already low unemployment. The slow adjustment to unemployment was a result of employers using various means to maintain employment levels, including; extended periods of unpaid leave, reduced hours of work and non-payment of wages. A theoretical model presented here explains why it was rational for firms to adjust labour in this way. The nature of inherited features of the Soviet labour market and lack of institutions necessary for a competitive market economy meant it was in the firm's interest initially to maintain employment levels. Quantitative analysis using Kyrgyz data for 1993 and 1996 provides evidence of changing economic behaviour in agents over this period.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2003 Ceema Zahra Namazie|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Journal of Economic Literature Classification System:||P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P23 - Factor and Product Markets; Industry Studies; Population
D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
|Date Deposited:||03 Jul 2008 08:38|
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