Emigration and the Optimal Speed of Transition

14 Pages Posted: 22 Dec 2003

See all articles by Harry Papapanagos

Harry Papapanagos

University of Macedeonia in Thessaloniki - Dept. of Balkan - Slavic & Oriental Studies

Peter Sanfey

European Bank for Reconstruction and Development (EBRD)

Abstract

The paper presents a model of labor reallocation in a transition economy and analyzes the determinants of the optimal speed of transition. The model is extended to consider the effect of emigration flows from the transition country. In general, a rapid rather than slow pace of restructuring is preferable in the long run, but an initial period of gradualism may be optimal. The authors conclude that emigration, by improving the rate of job creation in the private sector and by reducing the burden of unemployment on the government, may lead to an earlier switch to rapid adjustment of labor, and hence to a faster transition to a market economy.

Suggested Citation

Papapanagos, Harry and Sanfey, Peter, Emigration and the Optimal Speed of Transition. Available at SSRN: https://ssrn.com/abstract=421968

Harry Papapanagos

University of Macedeonia in Thessaloniki - Dept. of Balkan - Slavic & Oriental Studies

156 Egnatia St.
P.O. 1591
Thessaloniki, 54006
Greece
+30 2310 891471 (Phone)
+30 2310 891377 (Fax)

Peter Sanfey (Contact Author)

European Bank for Reconstruction and Development (EBRD) ( email )

One Exchange Square
London, EC2A 2JN
United Kingdom
+44 20 7338 6227 (Phone)
+44 20 7338 6110 (Fax)

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
26
Abstract Views
796
PlumX Metrics