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

48 Pages Posted: 7 Feb 2003  

Alexandru Voicu

City University of New York (CUNY) - College of Staten Island; IZA Institute of Labor Economics

Date Written: December 2002

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.

Keywords: Labor Force Participation, Three-state Dynamic Model, Multivariate Probit, Markov Chain Monte Carlo, Transition Economy, Land Reform

JEL Classification: C11, C15, C33, C35, J23

Suggested Citation

Voicu, Alexandru, Agriculture: Transition Buffer or Black Hole? A Three-State Model of Employment Dynamics (December 2002). IZA Discussion Paper No. 676. Available at SSRN: https://ssrn.com/abstract=372482

Alexandru Voicu (Contact Author)

City University of New York (CUNY) - College of Staten Island ( email )

NY
United States
718-982-2899 (Phone)

HOME PAGE: http://www.library.csi.cuny.edu/~pep/voicu.htm

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 527 (Phone)
+49 228 38 94 510 (Fax)

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