Publikacje | Publications

Joanna Tyrowicz, Lucas van der Velde, Jan Svejnar
Effects of Labor Reallocation on Productivity and Inequality – Insights from Studies on Transition
IZA DP | CGEG-CDEP WP | Published version (in Journal of Economic Surveys) | Slides
List of papers included in meta-analysis | Replication files

From a theoretical perspective, the link between the speed and scope of rapid labor reallocation and productivity growth or income inequality is ambiguous. Do reallocations with more flows tend to produce higher productivity growth? Does such a link appear at the expense of higher income inequality? We explore the rich evidence from earlier studies on worker flows in the period of massive and rapid labor reallocation, that is, the economic transition from a centrally planned to a market-oriented economy in CEE. We have collected over 450 estimates of job flows from the literature and used these inputs to estimate the short-run and long-run relationship between labor market flows, labor productivity, and income inequality. We apply the tools typical for a meta-analysis to verify the empirical regularities between labor flows and productivity growth as well as income inequality. Our findings suggest only weak and short-term links with productivity, driven predominantly by business cycles. However, data reveal a strong pattern for income inequality in the short run—more churning during reallocation is associated with a level effect toward increased Gini indices.

Joanna Tyrowicz, Lucas van der Velde
Labor flows and demographics
IZA DP | IAAEU DP | Published version (in Journal of Comparative Economics) | Slides | Replication files

We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker flows between jobs in different industries are rare relative to the demographic flows of youth entry and elderly exit. The same applies to the flows between state-owned enterprises and private firms. In fact, evidence suggest that changes in the demand for labor were accommodated mostly through demographic flows, with a smaller role left for job transitions. We also show that the speed of changing the ownership structure in the economy has driven exits to retirement, in particular the early exits.

Magdalena Smyk and Joanna Tyrowicz
Wage inequality and structural change
IZA DP | GRAPE WP | IAAEU DP | Published version (in Social Indicators Research) | Poster

Income inequality in the context of large structural change has received a lot of attention in the literature, but most studies relied on household post-transfer inequality measures. This study utilizes a novel and fairly comprehensive collection of micro data sets from between 1980’s and 2010 for both advanced market economies and economies undergoing transition from central planning to market based system. We show that wage inequality was initially lower in transition economies and immediately upon the change of the economic system surpassed the levels observed in advanced economies. We find a very weak link between structural change and wages in both advanced and post-transition economies, despite the predictions from skill-biased technological change literature. The decomposition of changes in wage inequality into a part attributable to changes in characteristics (mainly education) and a part attributable to changes in rewards does not yield any leading factors.

Stanisław Cichocki, Joanna Tyrowicz, Lucas van der Velde
Cyclical Trend of Labor Reallocation in Poland: Transition and Structural Change
GRAPE WP | Published version (in Eastern European Economics) | slides

Two main features of the reallocation process that took place in Eastern European and Former Soviet Union countries should be distinguished. The first feature was the decline in public sector employment as a result of the collapse of state-owned enterprises, linked with an increase in private sector employment as new private firms emerged and old public companies were privatized. The second feature was, and still is, the reallocation of labor from manufacturing to the service sector. Data from the Polish Labor Force Survey for the period 1995 – 2015 were used to construct measures of worker flows, gross and net, and their cyclical properties were used as a way to test the predictions of structural change and transition theories. It was found that labor market adjustments tend to amplify in upturns of the business cycle, while worker flows contribute only a fraction to the changing structure of employment. The policy implications of these findings are discussed.

Stanisław Cichocki, Paweł Kopiec
Modelling labour reallocation during the Polish transition: a search-and-matching approach
Published version (in Bank & Kredyt)

An important feature of the reallocation process that took place in Eastern European and former Soviet Union countries was the decline in public sector employment due to the collapse of state-owned enterprises combined with an increase in private sector employment as new private firms emerged and old public companies were privatized. We propose a theoretical, parsimonious model which combines this feature with the standard search and matching model introduced by Diamond, Mortensen and Pissarides. Using numerical simulation we show that faster transition (associated with faster restructuring of state-owned enterprises into more productive private firms) leads to a quicker convergence to the post-transitional equilibrium characterized by high GDP and high employment in the private sector. However, this comes at the cost of negative output growth and higher unemployment in the short run.

Tomasz Zgrzywa, Joanna Tyrowicz, Stanisław Cichocki
Czynniki wpływające na czas poszukiwania pierwszego zatrudnienia
Published version (in Gospodarka Narodowa)

This article aims to investigate factors that influence the time needed for young people to find their first job. Using data from the Programme for the International Assessment of Adult Competencies (PIAAC), a Cox proportional hazard model was estimated for all respondents and for five subgroups of respondents coming from countries with similar labor markets. The results for all the respondents show that factors influencing the time needed for young people to find their first job are in line with the literature. In the case of the five subgroups, there are significant differences between countries in terms of these factors. It seems that, in order to shorten the time needed for young people to find their first job, measures from labor markets with similar characteristics, where similar factors influence the process of people searching for work, should be applied. However, one should bear in mind that this process of “copying” may not be completely successful.