With the transition in Estonia, worker flows increased greatly, driven by an increase in job flows. As the situation stabilized, the job and worker flows converged at rates similar to those observed in Western economies. In 1989, job reallocation accounted for only a small fraction of overall...

The author uses cross-country data from Latin America and OECD countries to test the predictions of a simple efficiency wage model (Krebs and Maloney 1998) about the share of the workforce in self-employment and the rate of labor turnover across the process of development and demographic...

Combining microeconomic evidence with macroeconomic theory, the authors present an integrated approach to wage and employment determination in an economy where firms pay above market"efficiency wages"to prevent trained workers from quitting. The model offers predictions about the behavior of...

Applying quantile analysis to detailed firm-level data from Mexico, the authors study determinants of demand and wages for two classes of labor. Unions appear to have a strong impact on how much unskilled labor is employed but not on wages. This suggests an extreme example of"monopoly...

Large international organizations such as the World Bank pursue many objectives in hiring policies, including reduced costs, cultural diversity, and the avoidance of discrimination. There can be sharp tradeoffs between these objectives. Diversity is enhanced by recruiting from an international...

The authors use the 1994 Living Standards Measurement Survey to show that the impact of labor market regulations, namely mandated benefits, is mitigated by reducing the base earnings on which they are calculated. Therefore, market regulation neither accounts for labor market segmentation nor for...

Since the mid -1980s, Indonesia has rapidly deregulated. Employment opportunities, income generation capacity, and the opportunity to negotiate better working conditions have expanded. Many Indonesians are concerned that workers have not shared in economic development benefits and think that a...

The author compares Indonesian labor legislations with labor policies in five other APEC countries: Chile, the Republic of Korea, Malaysia, Mexico, and the United States. The report focuses on legislation affecting union regulation, minimum wages, nonwage compensation, and working conditions....

In this essay on how labor unions work, the author proposes a framework for the law on collective bargaining in developing countries. The structure of developing economies cannot sustain as high a level of unionism as in industrial economies. Typically less (often much less) than a quarter of...