Returns to Mobility in the Transition to a Market Economy

In spite of ongoing dramatic changes in labor market structure, transitional economies display low worker flows across sectors and occupations. Using data from the Polish Labor Force Survey, we develop and estimate an econometric model that enables us to isolate the effects of dismissal and job offe...

Full description

Saved in:
Bibliographic Details
Published inJournal of Comparative Economics Vol. 27; no. 1; pp. 4 - 32
Main Authors Boeri, Tito, Flinn, Christopher J.
Format Journal Article
LanguageEnglish
Published San Diego Elsevier Inc 01.03.1999
Elsevier
Elsevier BV
SeriesJournal of Comparative Economics
Subjects
Econometrics
Economic models
Labor force
Labour market structure
Labour mobility
Market adjustment
Market economies
Market economy
Transition economies
Online AccessGet full text

Cover

More Information
Summary:In spite of ongoing dramatic changes in labor market structure, transitional economies display low worker flows across sectors and occupations. Using data from the Polish Labor Force Survey, we develop and estimate an econometric model that enables us to isolate the effects of dismissal and job offer arrival rates and wage offer distributions on observed transition probabilities and wage payments. Our findings suggest that low mobility can be explained by the relatively insignificant monetary returns to job changes as well as by market segmentation in the allocation of job offers. Using the estimated model, we infer that reductions in the generosity of unemployment benefits will not significantly boost outflows from the unemployed state.J. Comp. Econom.,March 1999, 27(1), pp. 4–32. CEPR and Università Bocconi, IGIER via Salasco 5, 20136 Milan, Italy; and New York University, 269 Mercer Street, New York, New York 10003.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0147-5967
1095-7227
DOI:10.1006/jcec.1998.1570