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The Incidence and Cost of Job Loss in the Ukrainian Labor Market

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  • H. Lehmann
  • N. Pignatti
  • J. Wadsworth

Abstract

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 labor 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.

Suggested Citation

  • H. Lehmann & N. Pignatti & J. Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," Working Papers 545, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:545
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    Cited by:

    1. Hartmut Lehmann, 2014. "Worker displacement in transition economies and in China," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-20, May.
    2. Yuhao Ge & Hartmut Lehmann, 2013. "The costs of worker displacement in urban labor markets of China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    3. Hartmut Lehmann & Alexander Muravyev & Klaus Zimmermann, 2012. "The Ukrainian longitudinal monitoring survey: towards a better understanding of labor markets in transition," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    4. Lehmann, Hartmut & Muravyev, Alexander & Razzolini, Tiziano & Zaiceva, Anzelika, 2013. "The wage and non-wage costs of displacement in boom times: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1184-1201.
    5. Vasilaky, Kathryn, 2011. "The effects of school quality on fertility in a transition economy," MPRA Paper 38965, University Library of Munich, Germany.
    6. Alexander M. Danzer & Barbara Dietz, 2014. "Labour Migration from Eastern Europe and the EU's Quest for Talents," Journal of Common Market Studies, Wiley Blackwell, vol. 52(2), pages 183-199, March.
    7. Alexander M. Danzer, 2013. "Benefit Generosity and the Income Effect on Labour Supply: Quasi‐Experimental Evidence," Economic Journal, Royal Economic Society, vol. 123, pages 1059-1084, September.
    8. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2011. "The Russian-Ukrainian Political Divide," Eastern European Economics, Taylor & Francis Journals, vol. 49(6), pages 97-109, November.
    9. repec:aia:aiaswp:wp94 is not listed on IDEAS
    10. Appelqvist, Jukka, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, VATT Institute for Economic Research.
    11. Simon COMMANDER & Natalia ISACHENKOVA & Yulia RODIONOVA, 2013. "Informal employment dynamics in Ukraine: An analytical model of informality in transition economies," International Labour Review, International Labour Organization, vol. 152(3-4), pages 445-467, December.
    12. Sabine Bernabè & Marco Stampini, 2009. "Labour mobility during transition Evidence from Georgia1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(2), pages 377-409, April.
    13. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2012. "The Russian–Ukrainian earnings divide," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(1), pages 1-35, January.
    14. Lehmann, Hartmut & Pignatti, Norberto, 2018. "Informal employment relationships and the labor market: Is there segmentation in Ukraine?," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 838-857.
    15. Lehmann, Hartmut & Pignatti, Norberto & Wadsworth, Jonathan, 2006. "The incidence and cost of job loss in the Ukrainian labor market," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 248-271, June.
    16. Atanas Christev & Olga Kupets & Hartmut Lehmann, 2008. "Trade Liberalisation and Employment Effects in Ukraine," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(2), pages 318-340, June.
    17. Bohacek, Radim & Myck, Michal, 2017. "Economic Consequences of Political Persecution," IZA Discussion Papers 11136, Institute of Labor Economics (IZA).
    18. Hartmut Lehmann & Alexander Muravyev & Tiziano Razzolini & Anzelika Zaiceva, 2011. "The Wage and Non-wage Costs of Displacement: Evidence from Russia," Center for Economic Research (RECent) 060, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    19. repec:lic:licosd:20608 is not listed on IDEAS
    20. Kupets, Olga, 2016. "Education-job mismatch in Ukraine: Too many people with tertiary education or too many jobs for low-skilled?," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 125-147.
    21. Danzer, Alexander M., 2011. "Labor Supply and Consumption Smoothing When Income Shocks Are Non-Insurable," IZA Discussion Papers 5499, Institute of Labor Economics (IZA).
    22. Lehmann, Hartmut & Muravyev, Alexander & Razzolini, Tiziano & Zaiceva, Anzelika, 2010. "The Costs of Job Loss in Russia," IZA Discussion Papers 5415, Institute of Labor Economics (IZA).
    23. Nizalova, Olena & Norton, Edward C., 2021. "Long-term effects of job loss on male health: BMI and health behaviors," Economics & Human Biology, Elsevier, vol. 43(C).
    24. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses 0464, CASE-Center for Social and Economic Research.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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