The impact of labour market adjustment mechanisms on the labour market segmentation in Macedonia

Nikoloski, Dimitar and Pechijareski, Ljupcho and Pechijareski, Goran (2012) The impact of labour market adjustment mechanisms on the labour market segmentation in Macedonia. In: International conference “Migration and labour market”, October 19-20, 2012, Krushevo.

Paper, Dimitar and Pechijareski, Krushevo, October 2012, final.pdf

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The impact of the prolonged transitional recession in Macedonia on the labour market has been manifested in a high and persistent unemployment rate. According to the composition of the unemployed population by various socio-economic characteristics (education, age, gender, occupation, duration of unemployment etc.) the empirical analysis reveals striking labour market segmentation. With respect to this, some segments of the labour force such as youths, less educated workers and some ethnic minority groups face a much higher probability of becoming and/or remaining unemployed than the rest of the labour force. Moreover, the incidence of long-term unemployment in Macedonia is extremely high compared to other transition countries, indicating a likelihood of increasing human capital depreciation. In these circumstances alongside the traditional forms of adjustment in Macedonia have emerged additional mechanisms such as employment in the informal sector, inactivity and emigration. The investigation of the level of association between the unemployment and these labour market adjustment mechanisms is of particular importance since it enables to identify their role in cushioning the economic and social consequences of persistent unemployment in deprived labour market segments. Hence, it is necessary to assess the alternative labour market adjustment mechanisms from the perspective of their capacity to absorb a part of the unemployed workforce and providing additional income for the households. In this paper we make an attempt to identify the impact that labour market adjustment mechanisms exert on the labour market segmentation in Macedonia. For this purpose we use results from the survey carried on a representative sample of registered unemployed workers. Furthermore, we estimate econometric models that reveal the level of segmentation with respect to various labour market adjustment mechanisms. Finally, we formulate appropriate policy measures that target disadvantaged segments in order to improve the labour market functioning and to provide the necessary conditions for balanced economic development.

Item Type: Conference or Workshop Item (Paper)
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 11 Dec 2019 11:16
Last Modified: 11 Dec 2019 11:16

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