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Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms

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  • Marek Gora
  • Grzegorz Kula
  • Magdalena Rokicka
  • Oleksandr Rohozynsky
  • Anna Ruzik

Abstract

The paper focuses on the social safety nets in Russian Federation and Ukraine in the view of changes on the labour market since the beginning of economic transition. We showed that many past phenomena (e.g. restructuring of the economy, wage and pension arrears, new groups at-risk-of-poverty, demographic transition) caused a need to change an old type social safety net (SSN) into the new one, better adapted to emerging more liberal economy problems. Additionally, we analysed some gender specific issues related to social security that are caused mainly by inequalities in the labour market. Differences of earnings between men and women in Russia caused by sector segregation account for seem to be more important than the gap between gender earnings attributed to the position. In Ukraine the main contributors to gross gender differential of log earnings (that equals to 32%) explained by our model are sector segregation and occupation. We also pointed out to future policy challenges in the area of social security systems in both countries. The retirement reforms introduced recently are a step in the right direction, although their impact will not be felt for a number of years. Other reforms, with more immediate results, are necessary. Social safety nets should be made more efficient and social benefits should be better targeted.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.81769.de/diw_escirru0005.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series ESCIRRU Working Papers with number 5.

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Length: 77 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwesc:diwesc5

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Cited by:
  1. Marek Góra & Oleksandr Rohozynsky, 2008. "Social Security Influence on Labor Mobility: Possible Opportunities and Challenges," ESCIRRU Working Papers, DIW Berlin, German Institute for Economic Research 7, DIW Berlin, German Institute for Economic Research.
  2. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses, CASE-Center for Social and Economic Research 0464, CASE-Center for Social and Economic Research.

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