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The Choice of the Working Secto in Transition: Income and non‐income determinants of sector participation in Kazakhstan

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  • Paolo Verme

Abstract

This study compares the individual, household and location characteristics of private employees, the self‐employed, the unemployed and the economically inactive in Kazakhstan making use of a 1996 World Bank Living Standards Measurement Survey. The purpose is to understand whether the process of transition has determined a selection of workers exiting the state sector and entering the three relatively new ‘pools’ of private employees, self‐employed and unemployed. An ‘occupational choice’ model is used to explore the determinants of sector participation. It is found that income opportunities are similar between the private and self‐employment sectors, that the private sector is not necessarily the workers' first choice and that non‐income determinants including local economic and labour market conditions and household related factors explain better than income the choice of the working sector. Self‐employment seems to be a key sector in understanding the mechanisms of sector choice and the reallocation of labour. Unemployment appears as a choice of last resort and made by truly ‘rationed’ individuals.

Suggested Citation

  • Paolo Verme, 2000. "The Choice of the Working Secto in Transition: Income and non‐income determinants of sector participation in Kazakhstan," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 691-731, November.
    • Handle: RePEc:bla:etrans:v:8:y:2000:i:3:p:691-731
    DOI: 10.1111/1468-0351.00061
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    Cited by:

    1. Gang, Ira N. & Schmillen, Achim, 2017. "Sometimes, winners lose: Economic disparity and indigenization in Kazakhstan," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 605-621.
    2. Sam Jones & Finn Tarp, 2013. "Jobs and Welfare in Mozambique," WIDER Working Paper Series wp-2013-045, World Institute for Development Economic Research (UNU-WIDER).
    3. Carlo Azzarri & Gero Carletto & Benjamin Davis & Alberto Zezza, 2006. "Choosing to Migrate or Migrating to Choose: Migration and Labour Choice in Albania," Working Papers 06-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Brück, Tilman & Esenaliev, Damir & Kroeger, Antje & Kudebayeva, Alma & Mirkasimov, Bakhrom & Steiner, Susan, 2014. "Household survey data for research on well-being and behavior in Central Asia," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 819-835.
    5. Jones, Sam & Tarp, Finn, 2013. "Jobs and Welfare in Mozambique," WIDER Working Paper Series 045, World Institute for Development Economic Research (UNU-WIDER).
    6. Mariapia Mendola & Gero Carletto, 2008. "International migration and gender differentials in the home labor market: evidence from Albania," Working Papers 148, University of Milano-Bicocca, Department of Economics, revised Dec 2008.
    7. repec:ost:wpaper:345 is not listed on IDEAS
    8. M. Grazia Pittau & Roberto Zelli, 2023. "Anchoring Measurement of the Middle‐Income Class to Subjective Evaluation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(1), pages 60-75, March.

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