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Labor Market Dynamics in Romania During a Period of Economic Liberalization

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Author Info

  • Dostie, Benoit

    ()
    (HEC Montreal)

  • Sahn, David E.

    ()
    (Cornell University)

Abstract

In this paper, we estimate a model of labor market dynamics among individuals in Romania using panel data for three years, 1994 to 1996. Our motivation is to gain insight into the functioning of the labor market and how workers are coping during this period of economic liberalization and transformation that began in 1990. Our models of labor market transitions for men and women examine changing movements in and out of employment, unemployment, and self-employment, and incorporate specific features of the Romanian labor market, such as the social safety net. We take into account demographic characteristics, state dependence, and individual unobserved heterogeneity by modeling the employment transitions with a dynamic mixed multinomial logit.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2511.

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Length: 36 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2511

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Keywords: random effects; multinomial logit; Romania; initial conditions; employment dynamics;

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References

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  1. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
  2. Sahn, David E & Younger, Stephen D & Simler, Kenneth R, 2000. "Dominance Testing of Transfers in Romania," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 309-27, September.
  3. Vit Sorm & Katherine Terrell, 1999. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," William Davidson Institute Working Papers Series 273, William Davidson Institute at the University of Michigan.
  4. Voicu, Alexandru, 2005. "Employment dynamics in the Romanian labor market. A Markov chain Monte Carlo approach," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 604-639, September.
  5. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, vol. 23(1/2), pages 203-235.
  6. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
  7. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
  8. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-42, December.
  9. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
  10. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
  11. Bellmann Lutz & Estrin Saul & Lehmann Hartmut & Wadsworth Jonathan, 1995. "The Eastern German Labor Market in Transition: Gross Flow Estimates from Panel Data," Journal of Comparative Economics, Elsevier, vol. 20(2), pages 139-170, April.
  12. Terrell, Katherine & Sorm, Vit, 1999. "Labor Market Policies and Unemployment in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 33-60, March.
  13. Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, vol. 7(5), pages 575-601, September.
  14. John C. Ham & Jan Svejnar & Katherine Terrell, 1999. "Women's unemployment during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 47-78, March.
  15. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
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Citations

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Cited by:
  1. Mihai Alexandru BOTEZATU, 2008. "Models For Labor Force Analysis," Journal of Information Systems & Operations Management, Romanian-American University, vol. 2(1), pages 169-178, July.
  2. Pagés, Carmen & Stampini, Marco, 2009. "No education, no good jobs? Evidence on the relationship between education and labor market segmentation," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 387-401, September.
  3. Lenuta Carp, 2012. "The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 3(1), pages 43-54, July.
  4. Carmen Pagés-Serra & Marco Stampini, 2007. "¿Sin formación no hay buenos empleos? Elementos de juicio sobre la relación entre la formación y la segmentación del mercado laboral," Research Department Publications 4562, Inter-American Development Bank, Research Department.
  5. Juravle, Daniel, 2013. "Consecințele migrației externe asupra pieței muncii din România
    [The consequences of external migration on romanian labor market]
    ," MPRA Paper 44989, University Library of Munich, Germany.

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