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Labour mobility during transition: evidence from Georgia

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  • Sabine Bernab?
  • Marco Stampini

Abstract

This paper deals with labour mobility in Georgia during economic transition. We use quarterly 1998-99 panel data to examine mobility across six labour market statuses (inactivity, unemployment, formal wage employment, informal wage employment, selfemployment and farming). Our findings are consistent with the hypothesis of labour market segmentation. Formal employment is preferred to informal employment. Unemployment is largely a queuing device for individuals with higher education waiting for formal jobs. Some self-employment is subsistence activities and consistent with a segmented labour market, while other is high risk and potentially high return activities. Age, gender and education are significant determinants of labour mobility. Finally, informal employment serves as a buffer in times of recession -with farming and informal wage employment absorbing labour shed by other statuses during the Russian financial crisis.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 20608.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:20608

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Keywords: labour mobility; informal labour; transition; Georgia;

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References

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  1. Peter F. Orazem & Milan Vodopivec & Ruth Wu, 2005. "Worker displacement during the transition: Experience from Slovenia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(2), pages 311-340, 04.
  2. William T. Dickens & Kevin Lang, 1992. "Labor Market Segmentation Theory: Reconsidering the Evidence," NBER Working Papers 4087, National Bureau of Economic Research, Inc.
  3. Hartmut Lehmann & Jonathan Wadsworth, 1999. "Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain," CERT Discussion Papers 9909, Centre for Economic Reform and Transformation, Heriot Watt University.
  4. 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.
  5. World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855, October.
  6. World Bank, 2002. "Georgia : Poverty Update," World Bank Other Operational Studies 15447, The World Bank.
  7. Hartmut Lehmann & Norberto Pignatti & Jonathan Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," CERT Discussion Papers 0504, Centre for Economic Reform and Transformation, Heriot Watt University.
  8. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
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Cited by:
  1. repec:hal:journl:halshs-00375543 is not listed on IDEAS
  2. Lehmann, Hartmut & Zaiceva, Anzelika, 2013. "Re-defining Informal Employment and Measuring its Determinants: Evidence from Russia," IZA Discussion Papers 7844, Institute for the Study of Labor (IZA).
  3. Mónica Jiménez, 2013. "La informalidad laboral en el sector formal. Un análisis preliminar," Working Papers 10, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
  4. Stampini, Marco & Verdier-Chouchane, Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," IZA Discussion Papers 5611, Institute for the Study of Labor (IZA).
  5. Tansel, Aysit & Kan, Elif Oznur, 2012. "Labor Mobility across the Formal/Informal Divide in Turkey: Evidence from Individual Level Data," IZA Discussion Papers 6271, Institute for the Study of Labor (IZA).
  6. Ron Leung & Marco Stampini & Désiré Vencatachellum, 2010. "Working Paper 106 - Does Human Capital Protect Workers against Exogenous Shocks? South Africa in the 2008 - 2009 Crisis," Working Paper Series 243, African Development Bank.
  7. Hartmut Lehmann & Tiziano Razzolini & Anzelika Zaiceva, 2012. "Job Separations, Job loss and Informality in the Russian Labor Market," Department of Economics 0674, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  8. María del Pilar Casal & Bradford L. Barham, 2013. "Women’s Mobility in the Argentine Labour Market," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 59, pages 88-125, January-D.
  9. H Ingham & M Ingham, 2010. "Temporary Work in Poland: Who Gets the Jobs?," Working Papers 604645, Lancaster University Management School, Economics Department.
  10. Herzfeld, Thomas & Dries, Liesbeth & Glauben, Thomas, 2011. "Labour adjustment in agriculture: Assessing the heterogeneity across transition countries," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114540, European Association of Agricultural Economists.
  11. H. Lehmann & A. Zaiceva, 2013. "Informal Employment in Russia: Incidence, Determinants and Labor Market Segmentation," Working Papers wp903, Dipartimento Scienze Economiche, Universita' di Bologna.
  12. repec:hal:journl:halshs-00449447 is not listed on IDEAS
  13. Lehmann, Hartmut & Razzolini, Tiziano & Zaiceva, Anzelika, 2011. "Job Separations and Informality in the Russian Labor Market," IZA Discussion Papers 6230, Institute for the Study of Labor (IZA).

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