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Labor Market Dynamics in Romania During a Period of Economic Liberalization

Author

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  • Dostie, Benoit

    () (HEC Montreal)

  • Sahn, David E.

    () (Cornell University)

Abstract

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.

Suggested Citation

  • Dostie, Benoit & Sahn, David E., 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," IZA Discussion Papers 2511, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2511
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    References listed on IDEAS

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    7. 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.
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    12. 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 1117-1142, December.
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    Cited by:

    1. Mihai Alexandru BOTEZATU, 2008. "Models For Labor Force Analysis," Journal of Information Systems & Operations Management, Romanian-American University, vol. 2(1), pages 169-178, July.
    2. Pagés, Carmen & Stampini, Marco, 2009. "No education, no good jobs? Evidence on the relationship between education and labor market segmentation," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 387-401, September.
    3. Juravle, Daniel, 2013. "Consecințele migrației externe asupra pieței muncii din România
      [The consequences of external migration on romanian labor market]
      ," MPRA Paper 44989, University Library of Munich, Germany.
    4. Lenuta Carp, 2012. "The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 3(1), pages 43-54, July.
    5. Carmen Pagés-Serra & Marco Stampini, 2007. "¿Sin formación no hay buenos empleos? Elementos de juicio sobre la relación entre la formación y la segmentación del mercado laboral," Research Department Publications 4562, Inter-American Development Bank, Research Department.

    More about this item

    Keywords

    random effects; multinomial logit; Romania; initial conditions; employment dynamics;

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions

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