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The choice of the working sector in transition: Income and non-income determinants of sector participation in Kazakhstan

Economics of Transition, ISSN: 0967-0750, Vol: 8, Issue: 3, Page: 691-731
2000
  • 17
    Citations
  • 0
    Usage
  • 10
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    17
    • Citation Indexes
      10
    • Policy Citations
      7
      • Policy Citation
        7
  • Captures
    10

Article Description

This study compares the individual, household and location characteristics of private employees, the self-employed, the unemployed and the economically inactive in Kazakhstan making use of a 1996 World Bank Living Standards Measurement Survey. The purpose is to understand whether the process of transition has determined a selection of workers exiting the state sector and entering the three relatively new pools of private employees, self-employed and unemployed. An occupational choice model is used to explore the determinants of sector participation. It is found that income opportunities are similar between the private and self-employment sectors, that the private sector is not necessarily the workers first choice and that non-income determinants including local economic and labour market conditions and household related factors explain better than income the choice of the working sector. Self-employment seems to be a key sector in understanding the mechanisms of sector choice and the reallocation of labour. Unemployment appears as a choice of last resort and made by truly rationed individuals. © The European Bank for Reconstruction and Development, 2000.

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