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Bosnia and Herzegovina 2001-2004 : enterprise restructuring, labor market transitions and poverty

Author

Listed:
  • Tiongson, Erwin R.
  • Yemtsov, Ruslan

Abstract

This paper takes stock of labor market developments in Bosnia and Herzegovina over the period 2001-2004, using the panel Living Standards Measurement Study/Living in Bosnia and Herzegovina survey. The analysis estimates a multinomial logit model of labor market transitions by state of origin (employment, unemployment, and inactivity) following the specification of widely used models of transition probabilities, and analyzes the impact of standard covariates. The results provide strong evidence that there are indeed significant differences in labor market transitions by gender, age, education, and geographic location. Using the panel structure of the multi-topic survey data, the authors find that these transitions are related to welfare dynamics, with welfare levels evolving differently for various groups depending on their labor market trajectories. The findings show that current labor market trends reflecting women's movement out of labor markets and laid-off male workers accepting informal sector jobs characterized by low productivity will lead to adverse social outcomes. These outcomes could be averted if the planned enterprise reform program creates a more favorable business environment and leads to faster restructuring and growth of firms.

Suggested Citation

  • Tiongson, Erwin R. & Yemtsov, Ruslan, 2008. "Bosnia and Herzegovina 2001-2004 : enterprise restructuring, labor market transitions and poverty," Policy Research Working Paper Series 4479, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4479
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    References listed on IDEAS

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    1. International Monetary Fund, 2004. "Bosnia and Herzegovina: Staff Report for the 2004 Article IV Consultation," IMF Staff Country Reports 2004/067, International Monetary Fund.
    2. repec:lan:wpaper:4435 is not listed on IDEAS
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    Cited by:

    1. Cilasun, Seyit Mumin & Acar, Elif Oznur & Gunalp, Burak, 2015. "The Effects of Labor Market Reforms on the Labor Market Dynamics in Turkey," MPRA Paper 64767, University Library of Munich, Germany.
    2. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.
    3. Bateman, Milford & Sinković, Dean & Škare, Marinko, 2012. "The contribution of the microfinance model to Bosnia's post-war reconstruction and development: How to destroy an economy and society without really trying," Working Papers 36, Austrian Foundation for Development Research (ÖFSE).
    4. Leman Yonca Gurbuzer & Ozge Nihan Koseleci, 2008. "What hides behind extended periods of youth unemployment in Bosnia and Herzegovina? Evidence from individual level data," Working Papers hal-00308629, HAL.

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    Keywords

    Labor Markets; Labor Policies; Population Policies; Banks&Banking Reform;
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