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This books deals with labour reallocation in the midst of structural change, drawing on the experience of economic transition in formerly planned economies. It details those features of social welfare systems best suited to fostering structural change while at the same time reducing social costs. The interaction between labour and social policies is studies, showing the crucial role that non-employment benefits play in both the scope and the speed of transition. By including the influence of education systems, institution-building, and policy-enforcement mechanisms, this book goes beyond previous studies to provide a detailed analysis of the many contributing factors to the success or failure of the transition process.
Tito Boeri is Professor of Economics at Bocconi University, Milan. Formerly Senior Economist at the Organisation for Economic Co-operation and Development (OECD), he is Director of the Fondazione Rodolfo Debenedetti, and a member of the editorial board of the Journal of Comparative Economics.
Introduction ; Chapter 1. The Puzzles of Transition ; Annex 1. Building blocks of the models of the speed of transition ; Chapter 2. The Timing of Reforms ; Annex 2. A simple model of transition ; Chapter 3. Safety Nets, Earning Inequalities, and Reallocation ; Annex 3. The structure of benefits and job reallocation ; Chapter 4. Returning to Europe ; Annex 4. Non-employment benefits and the informal sector
Presents policy prescriptions that take into account factors of political economy as well as the state of the policy-enforcement mechanisms in these countries.