The fi rst aim of this paper is to analyze the changes in the labor market institutions in 25 transition countries with the use of the set of 14 chosen labor market institutions indicators. The second aim is to answer the question whether an increase in the level of the product market competition in analyzed countries led the labor market institutions to be more protective (i. e. increase in the EPL index, increase in the level of unemployment benefi ts or increase in the ALMP to GDP ratio). Conducted analysis shows that the general characteristic of the labor market institutions in the transition economies is their heterogeneity, both in time and especially in space. However the empirical results confirmed the relationship between the level of the product market competition and the level of workers protection arising from the labor market institutions only in the case of the EPL index.
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