Transition Report 2013 Stuck in transition?

CH4 180sq

Facts at a glance

The proportion of the population aged 25 and over in the transition region that had completed at least secondary education in 1990 (compared with 35% in advanced economies).

ALMOST 75% of migrants from countries in the transition region emigrated to other countries in the region.

Cover 180sqV2


IN 14 transition countries, having an inadequately educated workforce was among the top three (out of 14) business environment obstacles.

10 The number of universities in the transition region among the top 500 universities in the 2013 Shanghai ARWU league table.

Human capital


N. Altinok, C. Diebolt and J.-L. Demeulemeester (2013)

“A new international database on education quality: 1965-2010”,
Association Française de Cliométrie Working Paper No. 03-13.
(last accessed 30 August 2013).

E. Artuç, F. Docquier, C. Ozden and C. Parsons (2013)

“A global assessment of human capital mobility: the role of non-OECD destinations”, mimeo, February.
(last accessed 30 August 2013).

D. Autor, L. Katz and M. Kearney (2006)

“The polarization of the U.S. labor market”,
American Economic Review, Vol. 96, No. 2, pp. 189-194.

R.J. Barro and J.-W. Lee (2013)

“A new data set of educational attainment in the world, 1950–2010”,
Journal of Development Economics, Vol. 104, No. 4, pp. 184-198.

N. Bloom, H. Schweiger and J. Van Reenen (2012)
“The land that lean manufacturing forgot?
Management practices in transition countries”,
Economics of Transition, Vol. 20, No. 4, pp. 593-635.

J.D. Brown, J. Earle and A. Telegdy (2006)

“The productivity effects of privatization: Longitudinal estimates
from Hungary, Romania, Russia, and Ukraine”,
Journal of Political Economy, Vol. 114, No. 1, pp. 61-99.

K.B. Burchardi and T.A. Hassan (2013)

“The economic impact of social ties: Evidence from German reunification”,
Quarterly Journal of Economics, Vol. 128, No. 3, pp. 1219-1271.

M. Burda and C.M. Schmidt (1997)

“Getting behind the East-West German wage differential”,
Discussion Paper No. 250, University of Heidelberg.
See (last accessed 30 August 2013).

S.R. Chase (1998)

“Markets for communist human capital: returns to education
and experience in the Czech Republic and Slovakia”,
Industrial and Labor Relations Review, April, Vol. 51, No. 5, pp. 401-423.

A. Cojocaru and M.F. Diagne (2013)

“How reliable and consistent are subjective measures of welfare
in Europe and Central Asia?”, World Bank Policy Research Working Paper No. 6359. See (last accessed 30 August 2013).

F. Docquier and H. Rapoport (2012)

“Globalization, brain drain, and development”,
Journal of Economic Literature, Vol. 50, No. 3, pp. 681-730.

W.R. Easterly (2002)

“The elusive quest for growth”,
MIT Press, Cambridge MA, United States.

EBRD (2010)

Transition Report 2010: Recovery and Reform, London.

B. Eichengreen, D. Park and K. Shin (2013)

“Growth slowdowns redux: new evidence on the middle-income trap”,
NBER Working Paper No. 18673.

R.J. Flanagan (1995)

“Wage structures in the transition of the Czech economy”,
IMF Staff Papers,
Vol. 42, No. 4, pp. 836-854.

X. Gabaix and A. Landier (2008)

“Why has CEO pay increased so much?”,
Quarterly Journal of Economics, Vol. 123, No. 1, pp. 49-100.

L. Garicano and T. Hubbard (2009)

“The return to knowledge hierarchies”, mimeo, October.
See (last accessed 30 August 2013).

L. Garicano and E. Rossi-Hansberg (2006)

“Organization and inequality in a knowledge economy”,
Quarterly Journal of Economics, Vol. 121, No. 4, pp. 1383-1435.

N. Gennaioli, R. La Porta, F. López-de-Silanes and A. Shleifer (2013)

“Human capital and regional development”,
Quarterly Journal of Economics, Vol. 128, No. 1, pp. 105-164.

C. Goldin and L. Katz (2010)

“The race between education and technology”,
Harvard University Press, Cambridge MA, United States.

S. Guriev and E. Zhuravskaya (2009)

“(Un)Happiness in transition”, Journal of Economic Perspectives,
Vol. 23, No. 2, pp. 143-168.

Institute of International Education (various years)

“International students by academic level and place of origin”,
Open Doors Report on International Educational Exchange.
See (last accessed 30 August 2013).

S. Kaplan and J. Rauh (2013)

“It’s the market: the broad rise in the return to top talent”,
Journal of Economic Perspectives, Vol. 27, No. 3, pp. 35-56.

L. Katz and K. Murphy (1992)

“Changes in relative wages, 1963-1987: Supply and demand factors”, Quarterly Journal of Economics, Vol. 107, No. 1, pp. 35-78.

G. Kertesi and J. Köllő (2002)

“Economic transformation and the revaluation of human capital –
Hungary, 1986–1999”, in A. De Grip, J. van Loo and K. Mayhew (eds.):
“The economics of skill obsolescence: theoretical innovations and empirical applications” (pp. 235-273), Research in Labour Economics, Vol. 21.

B. Krueger and J.S. Pischke (1995)

“A comparative analysis of East and West German labour markets
before and after unification”, in R. Freeman and L. Katz (eds.):
“Differences and changes in wage structures”,
University of Chicago Press, United States.

C.E. Montenegro and H.A. Patrinos (2012)

“Returns to schooling around the world”,
background paper for the WDR 2013.
(last accessed 30 August 2013).

National Science Foundation (2013)

Survey of Earned Doctorates.

T. Natkhov and L. Polishchuk (2013)

“Institutions and allocation of talent”, mimeo.

L. Pritchett (2001)

“Where has all the education gone?”,
World Bank Economic Review, Vol. 15, No. 3, pp. 367-391.

P. Puhani (1997)

“All quiet on the wage front in Poland?”,
ZEW Discussion Papers, No. 97-03 E.
(last accessed 30 August 2013).

A. Rauhvargers (2011)

Global university rankings and their impact –
European University Association Report on Rankings 2011.
(last accessed 30 August 2013).

J. Rutkowski (1996)

“High skills pay off: the changing wage structure
during economic transition in Poland”,
Economics of Transition, Vol. 4, No. 1, pp. 89–112.

H. Schweiger and G. Friebel (2013)

“Management quality, ownership, firm performance
and market pressure in Russia”,
Open Economies Review, Vol. 24, No. 4, pp. 763-788.

H. Schweiger and P. Zacchia (2013)

“Are science cities fostering innovation in firms?
Evidence from Russia’s regions”, forthcoming.

B. Sianesi and J. Van Reenen (2003)

“The returns to education: Macroeconomics”,
Journal of Economic Surveys, Vol. 17, No. 2, pp. 157-200.

J. Svejnar (1990)

“A framework for the economic transformation of Czechoslovakia”,
Eastern European Economics, Vol. 29, No. 2, pp. 5-28.

M. Terviö (2008)

“The difference CEOs make: An assignment model approach”,
American Economic Review, Vol. 98, pp. 642-668.

UNESCO (2008)

Global Education Digest 2008,
UNESCO Institute for Statistics,
Montreal, Canada. See
(last accessed 30 August 2013).

UNESCO (2011)

Global Education Digest 2011,
UNESCO Institute for Statistics, Montreal, Canada. See
(last accessed 30 August 2013).

J. Večerník (1995)

“Changing earnings distribution in the Czech Republic:
Survey evidence from 1988-94”,
Economics of Transition, Vol. 3, No. 3, pp. 355-371.

World Bank (2011)

Migration and Remittances Factbook 2011,
World Bank, Washington, DC. See,,contentMDK:22759429~pagePK:64165401~piPK:64165026~theSitePK:476883,00.html (last accessed 30 August 2013).

World Bank (2012)

World Development Report 2013: Jobs, World Bank, Washington, DC.
(last accessed 30 August 2013).