Self-Selection and Earnings During Volatile Transition

25 Pages Posted: 1 Jun 2004

See all articles by Ralitza D. Dimova

Ralitza D. Dimova

Brunel University London - Economics and Finance; IZA Institute of Labor Economics

Ira N. Gang

Rutgers University - Economics Department

Date Written: May 2004

Abstract

Using Bulgarian Integrated Household Surveys for 1995, 1997 and 2001 this paper explores determinants of labor force status - not working, public sector employment, private sector employment and self-employment - and earnings for each of the three employment sectors. We find that while skilled labor's pattern of reallocation into the public sector remains roughly the same over time, the inflow of highly educated laborers into the private sector and selfemployment increases. These changes coincide with the erosion of the returns to observed skills in the private sector and self-employment, while the public sector continues to reward all types of education at higher than the elementary level.

Keywords: employment selection, earnings, Bulgaria

JEL Classification: J21, J23, J31

Suggested Citation

Dimova, Ralitza D. and Gang, Ira N., Self-Selection and Earnings During Volatile Transition (May 2004). Available at SSRN: https://ssrn.com/abstract=554041 or http://dx.doi.org/10.2139/ssrn.554041

Ralitza D. Dimova

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Ira N. Gang (Contact Author)

Rutgers University - Economics Department ( email )

75 Hamilton Street
ECONOMICS, New Jersey Hall, Rutgers University
New Brunswick, NJ 08901-1248
United States
732-932-7363 (Phone)
732-932-7416 (Fax)

HOME PAGE: http://econweb.rutgers.edu/gang/research

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