Original scientific paper
https://doi.org/10.3935/rsp.v8i1.227
The Factors of Labour Demand and the Nature of Unemployment in Croatia
Marinko Škare
; Fakultet ekonomije i turizma “Dr. Mijo Mirković” Sveučilišta u Rijeci
Abstract
Macroeconomic and structural imbalances visible in budget deficits and debt, underfinanced pension and social security programmes, state subsidies to inefficient enterprises, along with the overcontrolled and overregulated markets of goods, services and labour, are the primary sources of the significant rise in unemployment in the OECD countries. During the transition from a planned to a market economy, countries in transition registered significant job reallocation from the state sector to the poorly established and risky private sector. This caused a consistent loss of jobs in the state sector as a consequence of the “bad” privatisation process and the unsuccessful attempt to transfer newly unemployed persons to the private sector. Labour demand factors that have mostly influenced unemployment in Croatia are inflation, capital-labour relations and exchange rates. Technology and investments in equipment and exports have not had a significant influence on the demand for labour in Croatia as a consequence of low efforts in R&D activities during the period from 1960 to 1998.
Keywords
unemployment; labour demand; Philips curve; labour market; inflation
Hrčak ID:
30035
URI
Publication date:
1.1.2001.
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