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Employment and the Financial Crisis: Evidence from Tajikistan

  • Kröger, Antje
  • Meier, Kristina
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    The financial crisis in 2008/2009 had a presumably substantial influence on the everyday social and economic life of many Tajik people, including their behavior in the labor market. In our paper, we aim to study the impact of the economic crisis on individual labor market decisions. This is the first study investigating the impact of the financial crisis in a transition country using a unique panel data set from Tajikistan. We find that the global financial crisis had a strong impact on employment and migration patterns in Tajikistan. Our results show that regular wage employment and self-employment with hired labor decreased while piece-based wage employment and unpaid family work increased during the crisis. Further, households are more likely to send a family member abroad suggesting that the dependency on sending migrants abroad grows in times of economic turmoil. In combination with increased migration risk our results show that the Tajik labor market has largely been affected by the global financial crisis.

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    Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Berlin 2011 with number 50.

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    Date of creation: 2011
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    Handle: RePEc:zbw:gdec11:50
    Contact details of provider: Web page: http://www.ael.ethz.ch/

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    1. Shemyakina, Olga, 2011. "The effect of armed conflict on accumulation of schooling: Results from Tajikistan," Journal of Development Economics, Elsevier, vol. 95(2), pages 186-200, July.
    2. Patricia Justino & Olga Shemyakina, 2010. "Remittances and Labor Supply in Post-Conflict Tajikistan," HiCN Working Papers 83, Households in Conflict Network.
    3. Alexander M. Danzer & Oleksiy Ivaschenko, 2010. "Migration patterns in a remittances dependent economy: Evidence from Tajikistan during the global financial crisis," Migration Letters, Transnational Press London, UK, vol. 7(2), pages 190-202, October.
    4. Gemechu Ayana Aga & Christian Eigen-Zucchi & Sonia Plaza & Ani Rudra Silwal, 2013. "Migration and Development Brief, No. 20," World Bank Other Operational Studies 17020, The World Bank.
    5. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Bar-Ilan University, Department of Economics.
    6. Ivakhnyuk, Irina, 2009. "Russian Migration Policy and Its Impact on Human Development," MPRA Paper 19196, University Library of Munich, Germany.
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