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What Is Behind Stagnant Unemployment in Ukraine: The Role of the Informal Sector

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Author Info
Olga Kupets () (National University "Kyiv-Mohyla Academy", Kiev and IZA Bonn)
Abstract

In recent years there has been much policy discussion of the impact of unemployment benefits and other factors on unemployment duration in developed and transition countries. This paper presents first evidence on the determinants of unemployment duration in Ukraine. Using individual-level data from the first wave of the Ukrainian Longitudinal Monitoring Survey (ULMS -2003), which cover the period 1997-2003, we find no significant effect of benefit receipt on exits from unemployment. However, our survival analysis confirms the hypothesis that income from casual activities or subsidiary farming has strong disincentive effect on the hazard of re-employment in Ukraine. The results also indicate that individual’s age, marital status and gender, the level of education and place of residence are significantly related to the total time spent out of work. The estimates of the baseline hazard parameters do not suggest any marked negative duration dependence.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1738.

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Length: 47 pages
Date of creation: Sep 2005
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Handle: RePEc:iza:izadps:dp1738

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Related research
Keywords: unemployment duration casual work transition countries semiparametric duration analysis

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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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References listed on IDEAS
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. Gillian Paull, 2002. "Biases in the reporting of labour market dynamics," IFS Working Papers W02/10, Institute for Fiscal Studies. [Downloadable!]
  2. Kupets Olga, 2005. "Determinants of unemployment duration in Ukraine," EERC Working Paper Series 05-01e, EERC Research Network, Russia and CIS. [Downloadable!]
  3. Sabirianova, Klara Z., 2002. "The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russia," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 191-217, March. [Downloadable!] (restricted)
    Other versions:
  4. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627 Elsevier. [Downloadable!] (restricted)
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  5. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti, Alessandro, 1999. "Grime and Punishment: Insecurity and Wage Arrears in the Russian Federation," IZA Discussion Papers 65, Institute for the Study of Labor (IZA). [Downloadable!]
  6. S Machin & A Manning, 1998. "The Causes and Consequences of Long-Term Unemployment in Europe," CEP Discussion Papers 0400, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
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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. Fenglian Du & Jian-chun Yang & Xiao-yuan Dong, 2007. "Why Do Women Have Longer Unemployment Durations than Men in Post-Restructuring Urban China?," Cahiers de recherche PMMA 2007-23, PEP-PMMA. [Downloadable!]
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