This volume contains papers presented at a labor conference held in Baden, Austria, in June 2001. It provides the latest labor trends in EU accession countries, evaluates existing labor market policies and social protection mechanisms, and discusses alternative strategies for employment creation in the region. This volume represents the thinking of participating policymakers, academics, and representatives of civil society.
When Markets Fail: The Risk of Poverty and Social Exclusion
The levels of unemployment (particularly long-term unemployment) that accompany economic restructuring are worrisome not only because they waste productive resources. Ana Revenga documents the very strong link observed in empirical studies on Central and Eastern Europe between long-term unemployment, poverty, and social exclusion. With the rise in long-term unemployment, a trend can clearly be observed toward the emergence of more persistent poverty, that is, toward the formation of a class of "structurally" poor households-an underclass. Some groups appear more vulnerable than others: minorities, rural households, especially in isolated areas and depressed regions, and children. In contrast, the same studies show that safety nets have been relatively effective in protecting the elderly from poverty.
Bernard Funck - Lead Economist, World Bank, Washington, D.C., United States.
Lodovico Pizzati - Economist, World Bank, Washington, D.C., United States.