Efficiency and Distributional Effects of the Two-Tracked Labor Market Institutions in Albania. A new GLO Discussion Paper by GLO Affiliate Elvisa Drishti & colleagues.

The new GLO Discussion Paper reveals the weaknesses of Albanian labor market institutions.

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GLO Discussion Paper No. 837, 2021

Efficiency and Distributional Effects of the Two-Tracked Labor Market Institutions in AlbaniaDownload PDF
Drishti, Elvisa & Kalaj, Ermira Hoxha & Kopliku, Bresena Dema

GLO Affiliate Elvisa Drishti

Author Abstract: This study examines the efficiency and distributional effects of selected labor market institutions in Albania, a rather underresearched country. An initial overview of the postcommunist developments articulates why Albania has the poorest labor market performance among other South East European countries. Using a set of mixed qualitative and descriptive quantitative methods we find evidence of inefficient segmental effects and a predatory structure of labor market institutions which noticeably diverge from the efficient institutions’ point of reference. The institutional/welfare regime at the cross-national level points out at a relationship between the labor market institutional framework and labor market performance, as measured by unemployment. At the country level, a disproportional relationship between the “de jure” labor market regulation and unemployment is identified, which is also moderated by the interaction between labor market and economic institution

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