Jobs crisis : household and government responses to the great recession in Eastern Europe and central Asia

World Bank, Washington D.C.

Jobs crisis : household and government responses to the great recession in Eastern Europe and central Asia - Washington D.C. World Bank 2011 - xxx,100,ip. - Directions in development .

CONTENTS Foreword xi Acknowledgments xiii Abbreviations xv Overview xvii 1 Introduction 1 Eastern Europe and Central Asia Were Particularly Hard Hit by the Global GDP Contraction, the First Since World War II 2 Four Transmission Channels: How the Crisis Affects Household Welfare 5 About This Report 7 Note . 11 2 Labor Market Impacts 13 Labor Markets Were the Main Transmission Channel for the Crisis 14 Unemployment Increased Sharply 15 Workers Who Kept Their Jobs Took Home Smaller Paychecks 20 In Bulgaria, Labor Market Adjustments Were More Severe on Roma and Turkish Minorities 26 The Employment Decline Varied across Countries Due Not Only to Labor Market Regulations but also to a Confluence of Factors 26 Foreign Labor Market Conditions Spawned Domestic. Consequences 29 Notes 31 3 Household Coping Mechanisms 33 Crisis Impacts Prompt Steps to Increase Disposable Income and Reduce Expenditures 34 Households That Experienced a Shock Sought to Cope by Increasing Disposable Income 37 Households That Experienced a Shock also Coped by Reducing Expenditures during the Crisis 41 Poor and Minority Households Coped by Adopting Riskier Coping Strategies than Rich Households 46 Notes 51 4 Social Policy Responses to Protect Households 55 Four Tools Have Been Deployed to Protect People from the Effects of the Crisis 56 Labor Market Measures Have Been Deployed and Early Results Are Encouraging 57 Social Assistance Measures Have Been Leveraged and the Response Is Mixed 64 Minimum Pensions Were Used as a Crisis Response to Protect the Poor 70 Government Education Spending Was Protected More than Government Health Sector Spending in 2009, and Some Governments Tried to Shield the Poor from Service Disruptions 70 Notes 76 5 Improving Responses to Subsequent Crises 79 Automatic Stabilizers 82 Adjusters 84 Starters 87 Crisis Responses Require Fiscal Discipline, Planning, and Data 90 More Work on Crisis Responses Is Needed 92 Notes 92 References 95

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