A comparative analysis of employment practices among post‐communist and capitalist countries in South Eastern Europe

Abstract

Purpose This paper aims to explore the level of convergence in employment practices among firms in the post‐communist countries and capitalist countries in South Eastern Europe. Firms from a total of ten countries were included in the post‐communist block and firms from Greece and Turkey were included in the capitalist block. The main purpose was to verify whether employment practices in firms in the post‐communist countries now resemble that of firms in the capitalist countries after almost a decade of transition. Design/methodology/approach The study analyzed the employment practices in terms of the skill ration, employment of temporary workers and the education level of employees of about 8,000 firms in the region. Findings In terms of skill ratio and the education level significant levels of divergence was found between firms in post‐communist countries and capitalist countries. However, in terms of employing temporary workers significant levels of convergence was detected. Research implications/limitations The research shows that there is some convergence in the employment practices of post‐communist countries and capitalist countries. This shows that several post‐communist countries in South East Europe have completed the transition from a communist society to a capitalist society. Originality/value The study is one of the first, which compares the employment practices of post‐communist and capitalist countries in the region. By showing some levels of convergence, the study argues that the transition period in the post‐communist economies is finally ending and thus firms in post‐communist countries finally resemble those in capitalist countries at least in employment practices.

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