Transition’s Cyclical and Structural Unemployment:
How It All Began
In many areas of research on transition (terms: “transition”, “transformation” and “systemic change” are used interchangeably here) the impact, or legacy, of communist past tends to be underappreciated. The area under consideration at the 2007 Lancut Economic Forum is not an exception. Employments trends and patterns in transition have their share of puzzles, surprises, and misunderstandings. We begin with a certain model and, then, present “stylized facts” on early transition, affecting the employment/unemployment developments. Simplifying, early to mid-transition unemployment can be divided into two well known categories: cyclical and structural (which this author prefers to call: institutional).