Employment dynamics in the Romanian labor market. A Markov chain Monte Carlo approach

This paper analyzes the effect of the restructuring process on the employment dynamics of urban residents in the Romanian labor market. We study the effect of personal characteristics on the ability of individuals to adjust to labor market transformations. The empirical approach allows a general analysis of the reallocation process and avoids the sample selection problem that affects previous studies. Our results differ from findings on other Central and East European countries and suggest a shift in policy focus towards measures that stimulate investments in human capital targeted specifically to young and unskilled workers. Journal of Comparative Economics33 (3) (2005) 604-639.