| Abstract: |
This paper deals with labour mobility in Georgia during economic transition.
We use quarterly 1998-99 panel data to examine mobility across six labour
market statuses (inactivity, unemployment, formal wage employment, informal
wage employment, selfemployment and farming). Our findings are consistent with
the hypothesis of labour market segmentation. Formal employment is preferred
to informal employment. Unemployment is largely a queuing device for
individuals with higher education waiting for formal jobs. Some
self-employment is subsistence activities and consistent with a segmented
labour market, while other is high risk and potentially high return
activities. Age, gender and education are significant determinants of labour
mobility. Finally, informal employment serves as a buffer in times of
recession –with farming and informal wage employment absorbing labour shed by
other statuses during the Russian financial crisis. |