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Determinants of unemployment duration in Ukraine

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Author Info
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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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 05-01e.

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Date of creation: 28 Feb 2005
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Handle: RePEc:eer:wpalle:05-01e

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Related research
Keywords: Ukraine; long-term unemployment; unemployment insurance; Ukraine; semiparametric duration analysis; flexible baseline hazard;

Other versions of this item:

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olga Kupets, 2005. "What Is Behind Stagnant Unemployment in Ukraine: The Role of the Informal Sector," IZA Discussion Papers 1738, Institute for the Study of Labor (IZA). [Downloadable!]
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