TY  - JOUR
AB  - Discusses the short – and long‐term labour market policies
needed in Czechoslovakia to achieve successfully the economic reforms
envisaged in the current economic programme. Given the similarities with
other Eastern European countries in economic transition, the policy
implications of this analysis can be simply extended to other cases.
Emphasizes that wage indexation, deregulation of the wage structure and
facilitation of labour mobility are key short‐term measures; they
increase the prospects of success not only of structural reform, but
also of other macroeconomic policies aimed at controlling inflation. In
the long term, reforming labour market institutions, especially those
responsible for setting wages and unemployment compensation plans, must
take priority in order to ensure that the labour market functions in
harmony with the overall market environment. Concludes that unemployment
will not cause significant fiscal strain, if dismissals of retired
employees are made a priority, but that nonetheless open unemployment
will be higher than the Government expects. Another conclusion refers to
the adequacy of the wage indexation system to drive down inflationary
expectations and to stimulate employment adjustments. However, warns
about the practical enforcement of the wage policy and the distortionary
effect of the minimum wage policy. With respect to labour mobility,
breaking the link between provision of benefits and jobs is fundamental
for ensuring more rapid adjustment in employment opportunities and the
supply response.
VL  - 19
IS  - 5
SN  - 0144-3585
DO  - 10.1108/01443589210024827
UR  - https://doi.org/10.1108/01443589210024827
AU  - Riveros Luis A.
PY  - 1992
Y1  - 1992/01/01
TI  - Wage and Employment Policies in Czechoslovakia
T2  - Journal of Economic Studies
PB  - MCB UP Ltd
Y2  - 2024/04/18
ER  -