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Labour mobility during transition

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  • Sabine Bernabè
  • Marco Stampini

Abstract

This article deals with labour mobility in Georgia during economic transition. We use quarterly 1998-99 panel data to examine mobility across six labour market statuses (inactivity, unemployment, formal wage employment, informal wage employment, self-employment and farming). Our findings are consistent with the hypothesis of labour market segmentation. Formal employment is preferred to informal employment. Unemployment is largely a queuing device for individuals with higher education waiting for formal jobs. Some self-employment is subsistence activities and consistent with a segmented labour market, while other is high risk and potentially high return activities. Age, gender and education are significant determinants of labour mobility. Finally, informal employment serves as a buffer in times of recession - with farming and informal wage employment absorbing labour shed by other statuses during the Russian financial crisis. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The European Bank for Reconstruction and Development.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 17 (2009)
Issue (Month): 2 (04)
Pages: 377-409

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Handle: RePEc:bla:etrans:v:17:y:2009:i:2:p:377-409

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Cited by:
  1. Hartmut Lehmann & Tiziano Razzolini & Anzelika Zaiceva, 2012. "Job Separations, Job loss and Informality in the Russian Labor Market," Department of Economics 0674, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  2. François Gardes & Christophe Starzec, 2009. "Polish households' behavior in the regular and informal economies," Documents de travail du Centre d'Economie de la Sorbonne 09017, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. Aysit Tansel & Elif Oznur Kan, 2012. "Labor Mobility across the Formal/Informal Divide in Turkey: Evidence from Individual Level Data," Koç University-TUSIAD Economic Research Forum Working Papers 1201, Koc University-TUSIAD Economic Research Forum.
  4. Herzfeld, Thomas & Dries, Liesbeth & Glauben, Thomas, 2011. "Labour adjustment in agriculture: Assessing the heterogeneity across transition countries," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114540, European Association of Agricultural Economists.
  5. Lehmann, Hartmut & Razzolini, Tiziano & Zaiceva, Anzelika, 2011. "Job Separations and Informality in the Russian Labor Market," IZA Discussion Papers 6230, Institute for the Study of Labor (IZA).

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