Skill Acquisition and Firm Creation in Transition Economies

31 Pages Posted: 15 Feb 2006

See all articles by Zuzana Brixiova

Zuzana Brixiova

International Monetary Fund (IMF) - European Department; African Development Bank

Wenli Li

Federal Reserve Bank of Philadelphia

Tarik Yousef

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS)

Date Written: September 1999

Abstract

The transition from plan to market has hinged on the development of a dynamic private sector that would serve as the engine of growth and employment creation. This paper examines the link between the availability of skilled workers and the creation of new private firms. Using a dynamic search model, it shows how the lack of skilled workers inhibits entrepreneurship and depresses the rate of firm creation, slowing the recovery of aggregate output and labor productivity during the transition. The paper also shows how policies designed to encourage skill acquisition by workers have a positive impact on the economy.

Keywords: Skill acquisition firm creation transition

JEL Classification: J4 J31 P21

Suggested Citation

Brixiova, Zuzana and Li, Wenli and Yousef, Tarik, Skill Acquisition and Firm Creation in Transition Economies (September 1999). IMF Working Paper No. 99/130, Available at SSRN: https://ssrn.com/abstract=880657

Zuzana Brixiova (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

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African Development Bank ( email )

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Wenli Li

Federal Reserve Bank of Philadelphia ( email )

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Philadelphia, PA 19106-1574
United States

Tarik Yousef

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS) ( email )

Washington, DC 20057
United States
202-687-0347 (Phone)
202-687-7001 (Fax)

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