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Back to work : growing with jobs in Europe and Central Asia
Author:Arias, Omar S.; Sanchez-Paramo, Carolina; Davalos, Maria E.; Santos, Indhira; Tiongson, Erwin R.; Gruen, Carola; de Andrade Falcao, Natasha; Saiovici, Gady; Cancho, Cesar A.; Collection Title:Europe and Central Asia Reports
Country:Europe and Central Asia; Date Stored:2014/03/26
Document Date:2014/03/01Document Type:Publication
SubTopics:Markets and Market Access; Banks & Banking Reform; Labor Markets; Corporate Law; Labor PoliciesLanguage:Russian
Major Sector:Education; Industry and tradeRel. Proj ID:7E-Jobs Regional Report -- -- P130997;
Region:Europe and Central AsiaReport Number:84041
Sub Sectors:General education sector; General industry and trade sector; Secondary education; Tertiary education; Vocational trainingVolume No:1 of 1

Summary: Creating more and better jobs is perhaps the most critical challenge to boosting shared prosperity in Europe and Central Asia (ECA). This report examines the role of reforms, firms, skills, incentives and barriers to work, and labor mobility through the lens of two contextual factors: the legacy of centralized planned economies and the mounting demographic pressures associated with rapid aging in some countries and soaring numbers of youth entering the workforce in others. The main findings of the report are: 1) market reforms pay off in terms of jobs and productivity, although with a lag; 2) a small fraction of superstar high-growth firms, largely young, account for most of new jobs created in the region; 3) skills gaps hinder employment prospects, especially of youth and older workers, due to the inadequate response of the education and training systems to changes in the demand for skills; 4) employment is hindered by high implicit taxes on work for those transitioning to formal jobs from inactivity or unemployment and barriers that affect especially women, minorities, youth, and older workers; and 5) low internal labor mobility prevents labor relocation to places with greater job creation potential.

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