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Labor Market Dynamics in Romania During a Period of Economic Liberalization

In this paper, we estimate a model of labor market dynamics among individuals in Romania using panel data for three years, 1994 to 1996.Our motivation is to gain insight into the functioning of the labor market and how workers are coping during this period of economic liberalization and transformation that began in 1990. Our models of labor market transitions for men and women examine changing movements in and out of employment, unemployment, and self-employment, and incorporate specific features of the Romanian labor market, such as the social safety net. We take into account demographic characteristics, state dependence, and individual unobserved heterogeneity by modeling the employment transitions with a dynamic mixed multinomial logit.

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Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 06-17.

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Length: 41 pages
Date of creation: Dec 2006
Date of revision: Jun 2008
Handle: RePEc:iea:carech:0617
Contact details of provider: Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
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  1. Sorm, Vit & Terrell, Katherine, 2000. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 431-455, September.
  2. Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, vol. 7(5), pages 575-601, September.
  3. Voicu, Alexandru, 2002. "Employment Dynamics in the Romanian Labor Market: A Markov Chain Monte Carlo Approach," IZA Discussion Papers 438, Institute for the Study of Labor (IZA).
  4. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
  5. Bellmann Lutz & Estrin Saul & Lehmann Hartmut & Wadsworth Jonathan, 1995. "The Eastern German Labor Market in Transition: Gross Flow Estimates from Panel Data," Journal of Comparative Economics, Elsevier, vol. 20(2), pages 139-170, April.
  6. Sahn, David E & Younger, Stephen D & Simler, Kenneth R, 2000. "Dominance Testing of Transfers in Romania," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 309-27, September.
  7. Katherine Terrell & Vit Sorm, 1998. "Labor Market Policies and Unemployment in the Czech Republic," William Davidson Institute Working Papers Series 216, William Davidson Institute at the University of Michigan.
  8. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
  9. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-42, December.
  10. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
  11. John C. Ham & Jan Svejnar & Katherine Terrell, 1999. "Women's unemployment during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 47-78, March.
  12. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
  13. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
  14. Tito Boeri & Katherine Terrell, 2001. "Institutional Determinants of Labor Reallocation in Transition," William Davidson Institute Working Papers Series 384, William Davidson Institute at the University of Michigan.
  15. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, vol. 23(1/2), pages 203-235.
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