Microeconomic Reform and Displaced Workers: An Introduction

Implementation of microeconomic reform is likely to disturb the existing allocation of labour between production activities, and hence to initiate a process of adjustment in the labour market. An important aspect of this adjustment process which occurs due to microeconomic reform will involve displaced workers - that is, workers who are involuntary permanent job losers. The main objective of this paper is to provide a starting point for analysis of microeconomic reform and displaced workers.