This paper looks at the evolution of the labour markets in Estonia, Latvia, and Lithuania since the beginning of transition (in some respects since 1996/1998) until 2003, with a particular focus on labour force participation. How did labour supply in the Baltic countries respond to changes in...

Parental education is found to have a strong positive effect on propensity to enroll in and complete secondary and tertiary education, both in Soviet times and during transition, but mother’s education effect have been weakening. A human capital gap between titular ethnicities and Russian...

The framework of a general equilibrium heterogeneous agent model is used to study the optimal design of an unemployment insurance (UI) scheme and the voting behaviour on unemployment policy reforms. In a first step, the optimal defined benefit and defined replacement ratio UI systems are...

In this paper, the effects of alternatives to finance unemployment benefits on employment and wages are examined in a model with search generated equilibrium unemployment. It is demonstrated that employment improves if a value--added tax is levied, as opposed to a social system contribution,...

This paper explores the determinants of job search behavior, search intensity and choices of search methods of the unemployed workers in transitional Russia. We use pooled data from rounds 5-9 of the Russia Longitudinal Monitoring Survey (RLMS) to estimate the effects of socio- economic factors...

This paper presents the multinomial logit analysis based on the individual Polish LFS data stretched over the 1997-2004 period. It's main goal is to scrutinize the determinants of outflows from unemployment at the time when the two shocks have affected the Polish economy and labor market. It...

I study the consequences of heterogeneity of skills for the design of an optimal unemployment insurance, using a principal-agent set-up with a risk neutral insurer and infinitely lived risk averse agents. Agents, who are characterised by different productivities or skills, are employed by firms...

In this paper a dynamic stochastic model is used to simulate the matching process between skills demand and supply in a segmented labor market of a typical developing area where labor market frictions are pervasive. We address the issue of the emergence of a “bad” outcome i.e. equilibrium...

This paper introduces three measures of spatial dependence for use in the analysis of regional income distributions and their evolution. The first builds upon the notion of regional conditioning (Quah 1993), and is derived as a trace statistic from a modified Markov transition matrix. The...

This paper studies the effects of local interactions on the distribution of employment in a Keynesian-type model with strategic complementarities. It is shown that rational expectations generate symmetric equilibria for any interaction structure except autarky. Under adaptive expectations, the...