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Bosnia and Herzegovina 2001-2004 : enterprise restructuring, labor market transitions and poverty

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  • Tiongson, Erwin R.
  • Yemtsov, Ruslan

Abstract

This paper takes stock of labor market developments in Bosnia and Herzegovina over the period 2001-2004, using the panel Living Standards Measurement Study/Living in Bosnia and Herzegovina survey. The analysis estimates a multinomial logit model of labor market transitions by state of origin (employment, unemployment, and inactivity) following the specification of widely used models of transition probabilities, and analyzes the impact of standard covariates. The results provide strong evidence that there are indeed significant differences in labor market transitions by gender, age, education, and geographic location. Using the panel structure of the multi-topic survey data, the authors find that these transitions are related to welfare dynamics, with welfare levels evolving differently for various groups depending on their labor market trajectories. The findings show that current labor market trends reflecting women's movement out of labor markets and laid-off male workers accepting informal sector jobs characterized by low productivity will lead to adverse social outcomes. These outcomes could be averted if the planned enterprise reform program creates a more favorable business environment and leads to faster restructuring and growth of firms.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4479.

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Date of creation: 01 Jan 2008
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Handle: RePEc:wbk:wbrwps:4479

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Related research

Keywords: Labor Markets; Labor Policies; Population Policies; Banks&Banking Reform;

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  1. 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.
  2. Sandrine Cazes & Alena Nesporova, 2004. "Labour markets in transition: balancing flexibility and security in Central and Eastern Europe," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 23-54.
  3. Sergio Godoy & Joseph Stiglitz, 2006. "Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later," NBER Working Papers 11992, National Bureau of Economic Research, Inc.
  4. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 07 Dec 2005.
  5. B. Merlevede, 2003. "Reform Reversals and Output Growth in Transition Economies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/183, Ghent University, Faculty of Economics and Business Administration.
  6. Lauerová, Jana Stefanová & Terrell, Katherine, 2002. "Explaining Gender Differences in Unemployment with Micro Data on Flows in Post-Communist Economies," IZA Discussion Papers 600, Institute for the Study of Labor (IZA).
  7. Raul Eamets, 2004. "Labour market flows and adjustment to macroeconomic shocks in the Baltic States," Post-Communist Economies, Taylor & Francis Journals, vol. 16(1), pages 47-71.
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Cited by:
  1. repec:hal:wpaper:hal-00308629 is not listed on IDEAS
  2. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.

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