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Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms

  • Marek Gora
  • Grzegorz Kula
  • Magdalena Rokicka
  • Oleksandr Rohozynsky
  • Anna Ruzik

The paper focuses on the social safety nets in Russian Federation and Ukraine in the view of changes on the labour market since the beginning of economic transition. We showed that many past phenomena (e.g. restructuring of the economy, wage and pension arrears, new groups at-risk-of-poverty, demographic transition) caused a need to change an old type social safety net (SSN) into the new one, better adapted to emerging more liberal economy problems. Additionally, we analysed some gender specific issues related to social security that are caused mainly by inequalities in the labour market. Differences of earnings between men and women in Russia caused by sector segregation account for seem to be more important than the gap between gender earnings attributed to the position. In Ukraine the main contributors to gross gender differential of log earnings (that equals to 32%) explained by our model are sector segregation and occupation. We also pointed out to future policy challenges in the area of social security systems in both countries. The retirement reforms introduced recently are a step in the right direction, although their impact will not be felt for a number of years. Other reforms, with more immediate results, are necessary. Social safety nets should be made more efficient and social benefits should be better targeted.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.81769.de/diw_escirru0005.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series ESCIRRU Working Papers with number 5.

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Length: 77 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwesc:diwesc5
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  19. Asad Alam & Mamta Murthi & Ruslan Yemtsov & Edmundo Murrugarra & Nora Dudwick & Ellen Hamilton & Erwin Tiongson, 2005. "Growth, Poverty and Inequality : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7287.
  20. Elizabeth Brainerd, 2000. "Women in transition: Changes in gender wage differentials in Eastern Europe and the former Soviet Union," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
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