Labor Market Dynamics in Romania During a Period of Economic Liberalization

40 Pages Posted: 12 Jan 2007

See all articles by Benoit Dostie

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

David E. Sahn

Cornell University

Date Written: June 18, 2008

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 role of unemployment benefits. We take into account demographic characteristics, state dependence, and individual unobserved heterogeneity by modeling the employment transitions with a dynamic mixed multinomial logit.

Keywords: employment dynamics, Romania, multinomial logit, initial conditions, random effects

JEL Classification: P2, P3

Suggested Citation

Dostie, Benoit and Sahn, David E., Labor Market Dynamics in Romania During a Period of Economic Liberalization (June 18, 2008). IZA Discussion Paper No. 2511. Available at SSRN: https://ssrn.com/abstract=955855

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada
514-340-6453 (Phone)
514-340-6469 (Fax)

HOME PAGE: http://www.hec.ca/profs/benoit.dostie.html

IZA Institute of Labor Economics

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

David E. Sahn

Cornell University ( email )

B16 MVR Hall
Ithaca, NY 14853
United States
607-255-8931 (Phone)
607-255-0178 (Fax)

HOME PAGE: http://courses.cit.cornell.edu/des16

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