The Changing Demand for Skills: Evidence from the Transition

31 Pages Posted: 31 Mar 2004

See all articles by Simon John Commander

Simon John Commander

London Business School; IZA Institute of Labor Economics

Janos Kollo

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS); IZA Institute of Labor Economics

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Date Written: March 2004

Abstract

Transition has involved major job destruction and creation. This paper examines the skill content of these changes using a detailed three country firm survey. It shows that transition has exerted a strong bias against unskilled labour who have lost employment disproportionately. Moreover, job creation in new firms tends to be biased against workers with low educational attainments and skills. The skill content of blue collar work has also shifted upwards. Although there is variation across the sampled countries, these appear to be common features. They will have major longer run implications for the level and structure of employment and for inequality through the distribution of earnings.

Keywords: job reallocation, human capital, transition, Hungary, Romania, Russia

JEL Classification: J21, J23, J63, P31

Suggested Citation

Commander, Simon John and Köllõ, János, The Changing Demand for Skills: Evidence from the Transition (March 2004). IZA Discussion Paper No. 1073. Available at SSRN: https://ssrn.com/abstract=524804

Simon John Commander (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

János Köllõ

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS) ( email )

Labour Research Department
Budapest H-1112
Hungary
(36-1)309-2654 (Phone)
(36-1)319-3151 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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