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Labour mobility during transition: evidence from Georgia

  • Sabine Bernab?
  • Marco Stampini

This paper deals with labour mobility in Georgia during economic transition. We use quarterly 1998-99 panel data to examine mobility across six labour market statuses (inactivity, unemployment, formal wage employment, informal wage employment, selfemployment and farming). Our findings are consistent with the hypothesis of labour market segmentation. Formal employment is preferred to informal employment. Unemployment is largely a queuing device for individuals with higher education waiting for formal jobs. Some self-employment is subsistence activities and consistent with a segmented labour market, while other is high risk and potentially high return activities. Age, gender and education are significant determinants of labour mobility. Finally, informal employment serves as a buffer in times of recession -with farming and informal wage employment absorbing labour shed by other statuses during the Russian financial crisis.

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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 20608.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:20608
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  1. Gong, Xiaodong & Van Soest, Arthur & Villagomez, Elizabeth, 2004. "Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 1-36, October.
  2. Hartmut Lehmann & Norberto Pignatti & Jonathan Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," Upjohn Working Papers and Journal Articles 05-122, W.E. Upjohn Institute for Employment Research.
  3. H Lehmann & Jonathan Wadsworth, 2000. "Tenures that Shook the World: Worker Turnover in Russia, Poland and Britain," CEP Discussion Papers dp0459, Centre for Economic Performance, LSE.
  4. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 07 Dec 2005.
  5. Orazem, Peter & Vodopivec, Milan & Wu, Ruth, 2004. "Worker Displacement During The Transition: Experience From Slovenia," Staff General Research Papers 12032, Iowa State University, Department of Economics.
  6. World Bank, 2002. "Georgia : Poverty Update," World Bank Other Operational Studies 15447, The World Bank.
  7. 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.
  8. World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855.
  9. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
  10. William T. Dickens & Kevin Lang, 1992. "Labor Market Segmentation Theory: Reconsidering the Evidence," NBER Working Papers 4087, National Bureau of Economic Research, Inc.
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