nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2006‒06‒17
two papers chosen by
Anna Y. Borodina
Perm State University

  1. Nonstandard Forms and Measures of Employment and Unemployment in Transition: A Comparative Study of Estonia, Romania, and Russia By J. David Brown; John S. Earle; Vladimir Gimpelson; Rostislav Kapeliushnikov; Hartmut Lehmann; Almos Telegdy; Irina Vantu; Ruxandra Visan; Alexandru Voicu
  2. Home Production and the Macro Economy-Some Lessons from Pollak and Wachter and from Transition Russia By Reuben Gronau

  1. By: J. David Brown (Heriot-Watt University, CEU Labor Project, IZA); John S. Earle (W.E. Upjohn Institute for Employment Research and CEU Labor Project); Vladimir Gimpelson (Author-Workplace-Name:); Rostislav Kapeliushnikov (CLMS, Higher School of Economics); Hartmut Lehmann (University of Bologna; Heriot-Watt University, Labor Group EROC,Kiev School of Economics, IZA); Almos Telegdy (CEU Labor Project, Institute of Economics of the Hungarian Academy of Sciences); Irina Vantu (CEU Labor Project); Ruxandra Visan (CEU Labor Project); Alexandru Voicu (City University of New York, Staten Island College, IZA)
    Abstract: This paper looks behind the standard, publicly available labor force statistics relied upon in most studies of transition economy labor markets. We analyze microdata on detailed labor force survey responses in Russia, Romania, and Estonia to measure nonstandard, boundary forms and alternative definitions of employment and unemployment. Our calculations show that measured rates are quite sensitive to definition, particularly in the treatment of household production (subsistence agriculture), unpaid family helpers, and discouraged workers, while the categories of part-time work and other forms of marginal attachment are still relatively unimportant. We find that tweaking the official definitions in apparently minor ways can produce alternative employment rates that are sharply higher in Russia but much lower in Romania and slightly lower in Estonia, and alternative unemployment rates that are sharply higher in Romania and moderately higher in Estonia and Russia.
    Keywords: nonstandard, work, data, unemployment, Estonia, Russia, Romania
    JEL: J21
    Date: 2006–06
  2. By: Reuben Gronau
    Abstract: Recent years witnessed a flourishing of literature on the implication of shifts from home- production to market production on the macro economy, and in particular, the real business cycle. This literature employs calibration techniques to emulate the fluctuations in market output, labor and capital inputs and productivity over the business cycle, assuming a representative consumer and using stylized parameters of the substitution elasticity between home and market goods, and of the home production function. This paper argues that the parameters used in this literature cannot be verified empirically because of econometric identification problems. Furthermore, using data from the late 90s from transition Russia, it is argued that one cannot capture the fluctuation between the home and the market by using a representative consumer, since there is a distinct difference between males and females in their reaction to loss of employment: men shift most of the time released from market work to leisure while women divide it almost equally between work at home and leisure. Finally it is shown that the switch from a controlled economy to a market economy resulted in significant increase in home productivity and an increase in the free time enjoyed by both Russian men and women.
    JEL: D13 E32 J22 P36
    Date: 2006–06

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