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Labor Force Participation Dynamics in the Romanian Labor Market

Author

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  • Alexandru Voicu

Abstract

We use micro data from the Romanian Labor Force Survey to analyze the effect of the restructuring process on the Romanian labor market. We identify the reallocation mechanisms at work in the Romanian labor market, and we analyze the way personal characteristics influence inviduals' ability to adjust to labor market transformations. Participation decisions made by individuals are modeled as Markov decision processes. The resulting multivariate probit models are estimated using Markov Chain Monte Carlo techniques.

Suggested Citation

  • Alexandru Voicu, 2002. "Labor Force Participation Dynamics in the Romanian Labor Market," William Davidson Institute Working Papers Series 481, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2002-481
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39866/3/wp481.pdf
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    Cited by:

    1. Voicu, Alexandru, 2005. "Employment dynamics in the Romanian labor market. A Markov chain Monte Carlo approach," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 604-639, September.

    More about this item

    Keywords

    labor force participation; transition economy; Markov chain Monte Carlo;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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