Determinants of unemployment duration in Ukraine

Olga Kupets

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: This paper presents first evidence on the determinants of unemployment duration in Ukraine between 1997 and 2003, using individual-level data from the first wave of the Ukrainian Longitudinal Monitoring Survey (ULMS -2003). It investigates the conditional probability of an individual leaving unemployment to employment or economic inactivity in any particular month of his spell out of work by estimating it in a discrete time independent competing risks framework with flexible baseline hazard rates and gamma-distributed unobserved heterogeneity. The results in all specifications indicate no significant effect of receiving unemployment benefits but significant negative effect of having income from casual activities, subsidiary farming, household income or pension on the hazard of re-employment. Multivariate analysis also suggests that policies to reduce long-term unemployment should focus on older workers, less educated individuals, residents of small towns and rural area in the regions with relatively high unemployment rates.

Keywords: Ukraine; long-term unemployment; unemployment insurance; Ukraine; semiparametric duration analysis; flexible baseline hazard (search for similar items in EconPapers)
JEL-codes: J64 J68 P23 (search for similar items in EconPapers)
Date: 2005-02-28
New Economics Papers: this item is included in nep-cis, nep-lab and nep-tra
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Citations: View citations in EconPapers (7)

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Journal Article: Determinants of unemployment duration in Ukraine (2006)
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