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Labor Market Dynamics in Romania During a Period of Economic Liberalization

Author

Listed:
  • Dostie, Benoit

    (HEC Montreal)

  • Sahn, David E.

    (Cornell University)

Abstract

In this paper, we estimate a model of labor market dynamics among individuals in Romania using panel data for three years, 1994 to 1996. Our motivation is to gain insight into the functioning of the labor market and how workers are coping during this period of economic liberalization and transformation that began in 1990. Our models of labor market transitions for men and women examine changing movements in and out of employment, unemployment, and self-employment, and incorporate specific features of the Romanian labor market, such as the social safety net. We take into account demographic characteristics, state dependence, and individual unobserved heterogeneity by modeling the employment transitions with a dynamic mixed multinomial logit.

Suggested Citation

  • Dostie, Benoit & Sahn, David E., 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," IZA Discussion Papers 2511, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2511
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    References listed on IDEAS

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    1. 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.
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    3. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
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    6. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
    7. repec:bla:revinw:v:46:y:2000:i:3:p:309-27 is not listed on IDEAS
    8. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
    9. Bellmann Lutz & Estrin Saul & Lehmann Hartmut & Wadsworth Jonathan, 1995. "The Eastern German Labor Market in Transition: Gross Flow Estimates from Panel Data," Journal of Comparative Economics, Elsevier, vol. 20(2), pages 139-170, April.
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    11. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
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    13. John C. Ham & Jan Svejnar & Katherine Terrell, 1999. "Women’s unemployment during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 47-78, March.
    14. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-1142, December.
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    Cited by:

    1. Pagés, Carmen & Stampini, Marco, 2009. "No education, no good jobs? Evidence on the relationship between education and labor market segmentation," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 387-401, September.
    2. Juravle, Daniel, 2013. "Consecințele migrației externe asupra pieței muncii din România [The consequences of external migration on romanian labor market]," MPRA Paper 44989, University Library of Munich, Germany.
    3. Felicia Ramona Birau & Daniela-Emanuela Dănăcică & Cristi Marcel Spulbar, 2019. "Social Exclusion and Labor Market Integration of People with Disabilities. A Case Study for Romania," Sustainability, MDPI, vol. 11(18), pages 1-15, September.
    4. Mihai Alexandru BOTEZATU, 2008. "Models For Labor Force Analysis," Journal of Information Systems & Operations Management, Romanian-American University, vol. 2(1), pages 169-178, July.
    5. Carmen Pagés-Serra & Marco Stampini, 2007. "¿Sin formación no hay buenos empleos? Elementos de juicio sobre la relación entre la formación y la segmentación del mercado laboral," Research Department Publications 4562, Inter-American Development Bank, Research Department.
    6. Lenuta Carp, 2012. "The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 3(1), pages 43-54, July.

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    More about this item

    Keywords

    random effects; multinomial logit; Romania; initial conditions; employment dynamics;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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