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The incidence and cost of job loss in the Ukrainian labor market

  • Lehmann, Hartmut
  • Pignatti, Norberto
  • Wadsworth, Jonathan

We examine the effects of economic transition on the pattern and costs of worker displacement in Ukraine, using the Ukrainian Longitudinal Monitoring Survey (ULMS) for the years 1992 to 2002. Displacement rates in the Ukrainian labour market average between 3.4 and 4.8 percent of employment, roughly in line with levels typically observed in several Western economies, but considerably larger than in Russia. The characteristics of displaced workers are similar to those displaced in the West, in so far as displacement is concentrated on the less skilled. Around one third of displaced workers find re-employment immediately while the majority continues into long-term non-employment. The wage costs of displacement for the sub-sample of displaced workers do not seem to be large. The main cost for displaced workers in Ukraine consists in the extremely long non-employment spell that the average worker experiences after layoff.

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Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 34 (2006)
Issue (Month): 2 (June)
Pages: 248-271

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Handle: RePEc:eee:jcecon:v:34:y:2006:i:2:p:248-271
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

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  1. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  2. J. David Brown & John S. Earle, 2002. "Job Reallocation and Productivity Growth under Alternative Economic Systems and Policies: Evidence from the Soviet Transition," William Davidson Institute Working Papers Series 514, William Davidson Institute at the University of Michigan.
  3. Hartmut Lehmann & Kaia Phillips & Jonathan Wadsworth, 2002. "The Incidence and Cost of Job Loss in a Transition Economy: Displaced Workers in Estonia, 1989-1999," William Davidson Institute Working Papers Series 489, William Davidson Institute at the University of Michigan.
  4. 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.
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  6. Lehmann, Hartmut & Wadsworth, Jonathan, 1999. "Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain," IZA Discussion Papers 90, Institute for the Study of Labor (IZA).
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  8. Earle, John S. & Peter, Klara Sabirianova, 2004. "Contract Violations, Neighborhood Effects, and Wage Arrears in Russia," IZA Discussion Papers 1198, Institute for the Study of Labor (IZA).
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  14. Lehmann, Hartmut & Philips, Kaia & Wadsworth, Jonathan, 2005. "The incidence and cost of job loss in a transition economy: displaced workers in Estonia, 1989 to 1999," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 59-87, March.
  15. Jozef Konings & Hartmut Lehmann & Olga Kupets, 2002. "Gross Job Flows in Ukraine: Size, Ownership and Trade Effects," LICOS Discussion Papers 12602, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  16. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-88, January.
  17. Earle, John S. & Lehmann, Hartmut, 2002. "Microeconometric Studies of Russian Labor Markets in Transition: Introduction to a Symposium," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 91-95, March.
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