How flexible are labour markets in the CEECs? A macro level approach

Abstract

This article analyses labour market flexibility in the Central and Eastern European countries (the CEECs). An empirical approach is taken that concentrates on macro level issues including labour protection, labour market policy and the role of trade unions in wage setting. The authors conclude that labour relations are not less strictly regulated in the CEECs than in the EU countries. Expenditure on labour market policy is relatively low in most CEECs. Decreases in wages, and especially decreases in nominal wages, indicate the flexibility of wages in the CEECs and the minor role played by the unions in the wage-bargaining process.

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