Returns to Mobility in the Transition to a Market Economy

  title={Returns to Mobility in the Transition to a Market Economy},
  author={Tito Boeri and Christopher J. Flinn},
In spite of ongoing dramatic changes in labor market structure, transitional economies display rather low worker flows across sectors and occupations. Such low mobility can be explained by low returns to job changes as well as by market segmentation in the allocation of job offers. We develop an econometric model which enables us to characterize intertemporal changes in probabilities of dismissal, remuneration, and offer arrival rates on the basis of information on observed transitions and wage… CONTINUE READING