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Agriculture: Transition Buffer or Black Hole? A Three-State Model of Employment Dynamics

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  • Voicu, Alexandru

    ()
    (CUNY - College of Staten Island)

Abstract

We analyze the effect of land reform legislation on labor market dynamics in the Romanian economy. We show that the agricultural sector, a source of precarious employment, has become an absorbing state for certain categories of workers who lost their jobs in the nonagricultural sector. A random utility model is used to represent individuals’ sequential labor market decisions. The resulting multivariate probit model is estimated using Markov chain Monte Carlo methods.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 676.

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Length: 49 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:iza:izadps:dp676

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Related research

Keywords: labor force participation; three-state dynamic model; multivariate probit; Markov chain Monte Carlo; transition economy; land reform;

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Cited by:
  1. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.

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