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Agriculture: Transition Buffer or Black Hole? A Three-State Model of Employment Dynamics

Author

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  • Voicu, Alexandru

    (CUNY - College of Staten Island)

Abstract

We analyze the effect of land reform legislation on labor market dynamics in the Romanian economy. We show that the agricultural sector, a source of precarious employment, has become an absorbing state for certain categories of workers who lost their jobs in the nonagricultural sector. A random utility model is used to represent individuals’ sequential labor market decisions. The resulting multivariate probit model is estimated using Markov chain Monte Carlo methods.

Suggested Citation

  • Voicu, Alexandru, 2002. "Agriculture: Transition Buffer or Black Hole? A Three-State Model of Employment Dynamics," IZA Discussion Papers 676, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp676
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    Cited by:

    1. Matloob Piracha & Florin Vadean, 2009. "Return Migration and Occupational Choice," Studies in Economics 0905, School of Economics, University of Kent.
    2. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.

    More about this item

    Keywords

    labor force participation; three-state dynamic model; multivariate probit; Markov chain Monte Carlo; transition economy; land reform;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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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