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

  • Lehmann, Hartmut

    ()

    (University of Bologna)

  • Pignatti, Norberto

    ()

    (ISET, Tbilisi State University)

  • Wadsworth, Jonathan

    ()

    (Royal Holloway, University of London)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1770.

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Length: 44 pages
Date of creation: Sep 2005
Date of revision:
Publication status: published in: Journal of Comparative Economics, 2006, 34 (2), 248-271
Handle: RePEc:iza:izadps:dp1770
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  1. John S. Earle & Klara Z. Sabirianova, 2002. "How Late to Pay? Understanding Wage Arrears in Russia," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 661-707, July.
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  3. Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
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  5. Konings, Jozef & Lehmann, Hartmut, 2001. "Marshall and Labour Demand in Russia: Going Back to Basics," IZA Discussion Papers 372, Institute for the Study of Labor (IZA).
  6. 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.
  7. 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.
  8. Jozef Konings & Olga Kupets & Hartmut Lehmann, 2003. "Gross job flows in Ukraine," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 321-356, June.
  9. Hartmut Lehmann & Jonathan Wadsworth, 1999. "Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain," William Davidson Institute Working Papers Series 160, William Davidson Institute at the University of Michigan.
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  11. Orazem, Peter & Vodopivec, Milan & Wu, Ruth, 1995. "Worker displacement during the transition : experience from Slovenia," Policy Research Working Paper Series 1449, The World Bank.
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  14. Lehmann, Hartmut & Wadsworth, Jonathan & Acquisti, Alessandro, 1999. "Grime and Punishment: Insecurity and Wage Arrears in the Russian Federation," IZA Discussion Papers 65, Institute for the Study of Labor (IZA).
  15. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
  16. 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).
  17. 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.
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  19. 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.
  20. 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.
  21. 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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