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Determinants of unemployment duration in Ukraine

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  • Kupets, Olga

Abstract

This paper presents first evidence on the determinants of unemployment duration in Ukraine between 1997 and 2003, using individual-level data from the first wave of the Ukrainian Longitudinal Monitoring Survey (ULMS -2003). It investigates the conditional probability of an individual leaving unemployment to employment or economic inactivity in any particular month of his spell out of work by estimating it in a discrete time independent competing risks framework with flexible baseline hazard rates and gamma-distributed unobserved heterogeneity. The results in all specifications indicate no significant effect of receiving unemployment benefits but significant negative effect of having income from casual activities, subsidiary farming, household income or pension on the hazard of re-employment. Multivariate analysis also suggests that policies to reduce long-term unemployment should focus on older workers, less educated individuals, residents of small towns and rural area in the regions with relatively high unemployment rates.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 34 (2006)
Issue (Month): 2 (June)
Pages: 228-247

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Handle: RePEc:eee:jcecon:v:34:y:2006:i:2:p:228-247

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Web page: http://www.elsevier.com/locate/inca/622864

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  1. J. David Brown & John S. Earle, . "Job Reallocation and Productivity Growth in the Ukranian Transition," Upjohn Working Papers and Journal Articles jse20061, W.E. Upjohn Institute for Employment Research.
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  9. Mark C. Foley, 1997. "Determinants of Unemployment Duration in Russia," Working Papers 779, Economic Growth Center, Yale University.
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  11. Hunt, Jennifer, 1995. "The Effect of Unemployment Compensation on Unemployment Duration in Germany," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 88-120, January.
  12. Kupets Olga, 2005. "Determinants of unemployment duration in Ukraine," EERC Working Paper Series 05-01e, EERC Research Network, Russia and CIS.
  13. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  14. Boeri, Tito, 2001. "Transition with Labour Supply," IZA Discussion Papers 257, Institute for the Study of Labor (IZA).
  15. Irina Denisova, 2001. "Staying Longer on Unemployment Register in Russia: Lack of Education, Bad Luck or Something Else?," Working Papers w0017, Center for Economic and Financial Research (CEFIR), revised Nov 2002.
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  17. Foley, M.C., 1997. "Determinants of Unemployment Duration in Russia," Papers 779, Yale - Economic Growth Center.
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