The Labour Divide | Page 3

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The Labour Divide
1st EDITION

Sam Vaknin, Ph.D.

Editing and Design: Lidija Rangelovska

Lidija Rangelovska A Narcissus Publications Imprint, Skopje 2002
First published by United Press International �C UPI Not for Sale! Non-commercial edition.

? 2002 Copyright Lidija Rangelovska. All rights reserved. This book, or any part thereof, may not be used or reproduced in any manner without written permission from: Lidija Rangelovska �C write to: [email protected] or to [email protected]
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ISBN: 9989-929-27-0
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Table of Contents
I. Battling Unemployment
II. The Labour Divide - I. Employment and Unemployment
III. The Labour Divide - II. Migration and Brain Drain
IV. The Labour Divide - III. Entrepreneurship and Workaholism
V. The Labour Divide - IV. The Unions after Communism
VI. The Labour Divide - V. Employee Benefits and Ownership
VII. The Labour Divide - VI. The Future of Work
VIII. Immigrants and the Fallacy of Labour Scarcity
Battling Unemployment A First Draft Report Presented to the Minister of Labour and Social Policy By: Dr. Sam Vaknin Economic Advisor to the Government of the Republic of Macedonia
Skopje, Republic of Macedonia September, 1999 Contents I. Recommendations II. The Facts III. Bibliography IV. Appendix �C The Keynesian view of Unemployment, Stabilization Theory and Full Employment Budgeting V. Appendix �C Unemployment throughout the World (Excerpts from an academic article by R.di Tella and R. MacCullouch, 4/1999)

The author wishes to thank Mr. Rafael Di Tella from Harvard University (Harvard Business School) for his assistance in sharing with the author the article he has co-authored with Mr. R. MacCullouch of Bonn University.
The author wishes to thank Ms. Lidija Rangelovska for sharing her Country Assessment Survey results for Macedonia with the author. Her survey was prepared in collaboration with the Harvard Institute of International Development (HIID).

I. Recommendations
Get the Real Picture
No one in Macedonia knows the real picture. How many are employed and not reported or registered? How many are registered as unemployed but really have a job? How many are part time workers �C as opposed to full time workers? How many are officially employed (de jure) �C but de facto unemployed or severely underemployed? How many are on ��indefinite�� vacations, on leave without pay, etc.?
The Statistics Bureau must be instructed to make the gathering and analysis of data regarding the unemployed (through household surveys and census, if necessary) �C a TOP PRIORITY.
A limited amnesty should be declared by the state on violations of worker registration by employers. All employers should be given 30 days to register all their unregistered and unreported workers �C without any penalty, retroactive or prospective (amnesty). Afterwards, labour inspectors should embark on sampling raids. Employers caught violating the labour laws should be heavily penalized. In severe cases, closures should be enforced against the workplace.
All the unemployed must register with the Employment Bureau once a month, whether they are receiving benefits, or not. Non-compliance will automatically trigger the loss of the status of ��unemployed��. If a person did not register without good cause, he would have the right to re-register, but his ��unemployment tenure�� will re-commence from month 1 with the new registration.
I recommend instituting a households�� survey in