Transition economies see growth in wages and employment with market reforms.
Workers in Central and Eastern Europe and Central Asia had to adjust to new work rules after transitioning from central planning. Some countries embracing market rules are seeing wage and employment growth, while others are still catching up. Stabilization, reform, and private sector development are linked to higher labor incomes. Countries resisting reform may face low income levels. Active labor market policies could help ease the transition to new work demands.