Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms

98 Pages Posted: 26 Jan 2010

See all articles by Marek Góra

Marek Góra

Warsaw School of Economics (SGH); IZA Institute of Labor Economics

G. J. Kula

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); University of Warsaw

Magdalena Rokicka

CASE - Center for Social and Economic Research

Oleksandr Rohozynsky

Kyiv School of Economics; EERC

Anna Ruzik

CASE - Center for Social and Economic Research

Date Written: December 1, 2009

Abstract

The paper focuses on the social safety nets in Russian Federation and Ukraine in the view of changes on the labour market since the beginning of economic transition. We showed that many past phenomena (e.g. restructuring of the economy, wage and pension arrears, new groups at-risk-of-poverty, demographic transition) caused a need to change an old type social safety net (SSN) into the new one, better adapted to emerging more liberal economy problems.

Additionally, we analysed some gender specific issues related to social security that are caused mainly by inequalities in the labour market. Differences of earnings between men and women in Russia caused by sector segregation account for seem to be more important than the gap between gender earnings attributed to the position. In Ukraine the main contributors to gross gender differential of log earnings (that equals to 32%) explained by our model are sector segregation and occupation.

We also pointed out to future policy challenges in the area of social security systems in both countries. The retirement reforms introduced recently are a step in the right direction, although their impact will not be felt for a number of years. Other reforms, with more immediate results, are necessary. Social safety nets should be made more efficient and social benefits should be better targeted.

Keywords: social safety net, labour market, transitional economies

JEL Classification: E24, H55, J31, J21, J23, P2

Suggested Citation

Góra, Marek and Kula, G. J. and Kula, G. J. and Rokicka, Magdalena and Rohozynsky, Oleksandr and Ruzik, Anna, Social Security, Labour Market and Restructuring: Current Situation and Expected Outcomes of Reforms (December 1, 2009). CASE Network Report No. 90, Available at SSRN: https://ssrn.com/abstract=1539999 or http://dx.doi.org/10.2139/ssrn.1539999

Marek Góra (Contact Author)

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

G. J. Kula

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

University of Warsaw ( email )

Krakowskie Przedmiescie 26/28
Warszawa, Pl-00681
Poland

Magdalena Rokicka

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Oleksandr Rohozynsky

Kyiv School of Economics ( email )

vul. Yakira 13, office 334
Kyiv, 04119
Ukraine
+380444928012 (Phone)

HOME PAGE: http://www.kse.org.ua

EERC ( email )

vul Yakira 13, office 334
Kyiv, 04119
Ukraine
+1-404-418-6698 (Phone)

HOME PAGE: http://www.eerc.ru

Anna Ruzik

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
00-944 Warsaw, 01-031
Poland

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