Skill Acquisition and Firm Creation in Transition Economies

Li, Wenli

The transition from plan to market has hinged on the development of a dynamic private sector that would serve as the engine of growth and employment creation. This paper examines the link between the availability of skilled workers and the creation of new private firms. Using a dynamic search model, it shows how the lack of skilled workers inhibits entrepreneurship and depresses the rate of firm creation, slowing the recovery of aggregate output and labor productivity during the transition. The paper also shows how policies designed to encourage skill acquisition by workers have a positive impact on the economy

MoreLess

Year of publication:	1999
Authors:	Li, Wenli
Other Persons:	Yousef, Tarik (contributor) ; Li, Wenli (contributor) ; Brixiova, Zuzana (contributor)
Publisher:	Washington, D.C : International Monetary Fund
Subject:	Systemtransformation \| Economic transition \| Unternehmensgründung \| Business start-up \| Theorie \| Theory \| Fachkräfte \| Skilled labour \| Arbeitsproduktivität \| Labour productivity \| Osteuropa \| Eastern Europe \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Transformationsstaaten \| Transition countries