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War Effects on the labor market: Corporate employment, productivity, and wages in Ukraine

Author

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  • Andriy Tsapin

    (National Bank of Ukraine)

Abstract

This study examines the effects of the russia's full-scale invasion on the Ukrainian corporate labor market. We use the DID technique to analyze a panel data set of over 100,000 firms linked to geolocation and industry data spanning 2021-2024 and show how war harms the corporate labor market in Ukraine. Specifically, our findings evidence that destructive military shocks adversely affected the number of employees hired, productivity, and wages paid in the corporate sector. We emphasize that the war effects are heterogeneous across firm size and labor intensity and depend on external debt and bank financing. The results obtained have considerable policy implications, making them valuable to both researchers and policymakers.

Suggested Citation

  • Andriy Tsapin, 2026. "War Effects on the labor market: Corporate employment, productivity, and wages in Ukraine," IHEID Working Papers 03-2026, Economics Section, The Graduate Institute of International Studies.
    • Handle: RePEc:gii:giihei:heidwp03-2026
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    More about this item

    Keywords

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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