Georgia : Skills Mismatch and Unemployment, Labor Market Challenges
This paper reviews labor market performance in Georgia, and examines the link between labor market outcomes and poverty. At over 15 percent, the unemployment rate in the country is high by European standards. Georgia faces three main labor market i...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/03/18060967/georgia-skills-mismatch-unemployment-labor-market-challenges http://hdl.handle.net/10986/15985 |
| Summary: | This paper reviews labor market
performance in Georgia, and examines the link between labor
market outcomes and poverty. At over 15 percent, the
unemployment rate in the country is high by European
standards. Georgia faces three main labor market issues: (a)
underutilization of labor resources, (b) earnings
inequality, and (c) skills mismatch. All three have a
negative impact on poverty. There is a mismatch between the
demand for highly educated workers and their supply.
Improving labor market outcomes is key to poverty reduction.
This requires supporting the creation of more and better
jobs in order to absorb the surplus labor and increase
earnings. It also requires improving the quality of
education to reduce the skills mismatch and support
modernization of the Georgian economy. Finally, improving
labor market outcomes requires developing institutions that
improve access to jobs, reduce income inequality, and
effectively protect core worker rights. The analysis
presented in this paper represents individual level data
from the 2010 Household Budget Survey (HBS) implemented by
the National Statistics Office of Georgia (Geostat). |
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